Digital Domain Media Group Inc., known for creating eye-catching digital effects for movies such as “Titanic” filed for Chapter 11 bankruptcy this week. The company, founded by director James Cameron, plans to sell the business for an estimated $15 million to a private investment firm. While the company has been in business for 10 years, just months ago the company went public and on the first day of trading prices dropped by 16 percent.
Digital Domain is known for creating multiple effects for films such as “Apollo 13” and “Transformers.” The company is also known for creating a “Digital Tupac” that performed with Snoop Dogg and Dr. Dre at the Coachella music festival earlier this year. The creation put the company into the spotlight that drew the attention of millions. There were even talks of making a digital tour for Tupac, a rap artist who was murdered in 1996. A 17 percent increase in shares was experienced when the hologram character went viral. The company has interest in creating a digital Elvis, yet stock prices continued to fall after the announcement. The New York Stock Exchange (NYSE) recently announced it will delist the company.
Digital Domain has studios in Canada and California along with operations in Port St. Lucie, Florida. The company specializes in animation, digital visual effects and production. The company has produced effects for over 90 movies throughout the entertainment industry, with projects created for the advertising industry as well. While stocks had fallen since it had gone public, stocks fell sharply when the company announced debt issues including missed payments. The company reportedly has assets totaling nearly $205 million with liabilities close to $214 million. The company will continue operations during bankruptcy proceedings.