Digital Domain May Go Bankrupt

CEO Quits

Last month we reported that the special effects company responsible for the Ender’s Game movie, Digital Domain, dropped $15 million on Ender’s Game. The Wall Street Journal reported on Digital Domain’s losses at the time, “The decrease in the gross margin percentage of revenues in the first quarter of this year, as compared to the same period of the prior year, was primarily impacted by the inclusion of co-production revenues of $2.2 million from our work on Ender’s Game at 100 percent of the direct cost of revenues because we are investing the gross margin on our work as part of our equity in the film.”

Today the San Francisco Chronicle reports that Digital Domain’s CEO, John Textor, resigned and will be replaced by Ed Ulbrich, a longtime executive in wake of company restructuring which may lead to bankruptcy. In an effort to reduce spending, Digital Domain said in a statement that they had eliminated almost all staff in Port St. Lucie, Florida, where it’s based, but  that studios in California and Vancouver will continue to operate.

Digital Domain will continue to work on Ender’s Game. The Ender’s Game movie will hit theaters November 1, 2013.

Edit: Via Bloomberg

Post-production work on “Ender’s Game” remains on schedule, Peter Wilkes, a spokesman for Lions Gate, said in an interview. “We’re very excited about ‘Ender’s Game’ and we’re very confident we will release it as planned on Nov. 1, 2013.”


Comments

Digital Domain May Go Bankrupt — 14 Comments

  1. Damn…does this mean we have to wait longer for the trailer? Summit, DD, Lionsgate, and company. Y’all need to drop a website where people can buy some movie gear. Start recouping this cost now…stop waiting.

  2. Ok. After reading something online (because the Internet never lies) I’m starting to believe that Ender’s Game is going to be finished by another VFX house. I think the term “may” go bankrupt should be changed to “definitely” going bankrupt. Their numbers are not looking good as a company as a whole. Closing down one studio in FL is only the start. Their stock price is under a dollar, and they have burnt through A LOT of cash. Right now it seems that Ender’s Game is there most lucrative prospect and that’s not going to yield them any kind of financial return until 2013 at least, provided it’s a blockbuster. W’ell know either way by the end of this coming week, what happens to Digital Domain and Ender’s Game.

  3. They’re not just closing down ONE studio in Florida. Isn’t that where their headquarters is located?

    If anyone at DD is listening–you have a couple of very talented and enthusiastic people who are willing to do what we can.

    If any of our circuits or gears can help….

  4. Digital Domain claims that it will “look like one of the biggest films you’ve ever seen”

    What does that MEAN, though? it won’t BE one of the biggest films, but it will only LOOK like one??? What is a film except for what it “looks like”?

    Will it LOOK like Star Wars, or Titanic, but sound like Ishtar?

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