Six Bidders to Bid for Digital Domain Today

DD’s Ender’s Game Film Investment to be Auctioned Off

Today, September 21st Digital Domain will be auctioned off to bidders. The attorney for the company, Robert J. Feinstein, said in court yesterday that they will see as many as six bidders in the auction, although none of the bidders were mentioned by name. An opening bid of $15 million will be made by Searchlight Capital.

Digital Domain has made a $17 million investment in the Ender’s Game film. Attorney Josef S. Athanas said in court yesterday that the company’s investment in Ender’s Game may be their most valuable asset. Their investment in the Ender’s Game film will be auctioned off starting tomorrow, as part of Digital Domain as a whole. After the new owner has acquired rights to Digital Domain, the new owner will decide what to do with their Ender’s Game investment. We’ll keep you up to date on today’s proceedings as the information comes in.

The Ender’s Game movie will be released in theaters November 1, 2013.
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  • rames

    Some factual errors in your article:
    1. “Six bidders to bid” means something entirely different than “may see as many as six bidders” when your source states that there are only two confirmed bidders yet.
    2. DDMG’s investment in the Ender’s Game film will NOT be auctioned off. The auction that starts today (Sep 21) is for all the assets of the company (including the Ender’s Game investment) and certain obligations (eg. stockholders will likely receive nothing). OddLot and Summit both filed with the court that the Ender’s Game agreements are not to be sold (separately) without their consent. That means the winning bidder will get everything, and THEN will have to decide what to do with the EG stake.

    I’m pretty sure both OddLot and Summit are pretty darn afraid of that and would much rather regain control of that stake. I wouldn’t be surprised if we’ll see some kind of deal that involves Lionsgate and/or OddLot. The winning bidder will be either a DDMG competitor who should have no interest in co-producing feature films as this is not their area of expertise. Or it will be some PE firm that intends to beautify DDMG’s parts, chop them up and sell them for a profit. In both cases Summit/OddLot would be smart to secure a deal for the “for sale” Ender’s Game investment before the auction even takes place.

  • http://www.facebook.com/profile.php?id=624546088 Stephen Sywak

    “The Ender’s Game movie will be released in theaters November 1, 2013.”

    I’m betting…no, it won’t. I’m thinking Summer 2014, at best.

  • http://www.facebook.com/profile.php?id=624546088 Stephen Sywak

    My new prediction: November 2014.

    Digital Domain Media Group Inc. (DDMGQ), the special-effects company that collected millions of dollars in cash and land from taxpayers before filing bankruptcy, should be barred from selling any public property, the Florida city where the company is based said in a court filing.

    Officials from Port St. Lucie are concerned that an auction of the company’s assets that began today may include computers and other property that are actually owned by the city through a lease agreement. Beginning in 2010, the town sold $40 million of revenue bonds to help build a 150,000-square-foot digital animation studio, gave the company $10 million and provided 15.5 acres of land on which the studio was built.

    http://www.businessweek.com/news/2012-09-21/digital-domain-sale-opposed-by-officials-in-florida-city

    • http://www.facebook.com/profile.php?id=624546088 Stephen Sywak

      http://www.palmbeachpost.com/news/business/shareholder-suit-accuses-former-digital-domain-cha/nSHDF/

      The city that was Digital Domain Media Group’s biggest benefactor slammed the company in court today, and a shareholder suit accused former Chairman and Chief Executive John Textor of fraud and “materially false and misleading statements.”

      • http://www.facebook.com/profile.php?id=624546088 Stephen Sywak

        So, the same people who are telling us that the “Ender’s Game” movie is still on track for November 2013 are the people who are currently being sued in court for saying good things (that weren’t necessarily true) about their company to prop it up against premature collapse.

        November. 2014. If we’re lucky.

    • http://www.facebook.com/profile.php?id=624546088 Stephen Sywak

      http://www.variety.com/article/VR1118059591

      The company filed for bankruptcy Sept. 11 and CEO Ed Ulbrich argued that a quick sale was the only way to keep it alive and viable. An exec from Marvel also testified at a hearing that the studio, and other clients, would drop Digital Domain without a speedy resolution. The official Committee of Unsecured Creditors agreed to the auction in a filing on Wednesday.

      OddLot Entertainment said it hasn’t decided. Oddlot is the company behind sci-fi film “Enders Game,” in which Digital Domain invested $17 million.