Wed, Apr 25, 2012- Digital Domain Media Group, Inc., a leading digital production company focused on visual effects, original content animation and major studio co-productions, today announced that it has executed final definitive agreements in connection with its Joint Venture Agreement with Beijing Galloping Horse Film Co., Ltd., a major participant in the high-growth China film market.
The agreement includes a license for the new joint venture to use Digital Domain Media Group’s patented technology for converting 2-D images into 3-D, which will enable the joint venture to participate in the rapidly growing market for 3-D films. Digital Domain Media Group holds the most comprehensive portfolio of patents, covering effectively all modern processes of 2-D to 3-D conversion.
The joint venture between Galloping Horse and Digital Domain Media Group is the first large-scale initiative between a leading global visual effects company and a China-based film production company. It is designed to address China’s quickly increasing demand for large budget feature films, including the very best of visual special effects and computer-generated animation imagery.
Digital Domain Media Group and Beijing Galloping Horse Film Co. will each own 50 percent of The Digital Domain Galloping Horse Studio. Digital Domain Media Group will contribute its technology and expertise in operating a VFX operation, including the company’s patented technology for converting 2-D images into 3-D images. Digital Domain Media Group will also be responsible for designing the facility and for training personnel. Beijing Galloping Horse Film Co. will provide the land for the Studio and will be responsible for the construction and basic build-out costs for the new facility, expected to require approximately $50 million in total investment from Galloping Horse.
This agreement, which marks the Digital Domain Media Group’s first step into the high-growth film market in China, provides the company with access to a source of efficient capital in China and provides Beijing Galloping Horse Film Co. with access to the core U.S. film industry. This joint venture is another example of the Digital Domain Media Group’s use of strategic partnerships to implement its growth strategy.