According to a statement released by Digital Domain on Monday, the company has decided to retain Wells Fargo as its financial advisor, to "assist with [the] evaluation of strategic alternatives in order to maximize shareholder value." There has been speculation that the announcement is proof that Digital Domain is on the auction block.
Scott Ross, former CEO of Digital Domain, tweeted in response to the announcement:
"DDMG sale is imminent."
David Cohen of Variety delivered a message from John Textor in response to Ross' tweet: "While I have been on record as agreeing with Scott on a few matters lately, he could not be more wrong on this one. He should stay away from company merger rumors and focus on what he knows...visual effects."
Cohen astutely noted in his Twitter feed that Textor brought up "merger rumors" out of the blue, indicating that the company might be pursuing a yet-undisclosed merger.
About Digital Domain Media Group (courtesy DD press release)
Digital Domain Media Group (DDMG: NYSE) leverages its expertise in digital visual effects (VFX) and computer-generated (CG) animation across a group of interrelated businesses. At its foundation is Digital Domain Productions (DDPI), an award-winning digital production company founded in 1993. This leading provider of visuals has contributed to more than 90 major motion pictures, including Titanic, the Transformers series, Pirates of the Caribbean: At World’s End and TRON: Legacy, hundreds of commercials, and recently created the virtual likeness of rapper Tupac Shakur for Dr. Dre’s show at the Coachella Valley Music Festival. Mothership, a DDPI subsidiary, focuses on creating advertising, entertainment and branded content from concept to completion, across multiple media platforms. DDMG, its work and its employees have been recognized with numerous awards, including seven from the Academy of Motion Picture Arts and Sciences. DDMG also converts two-dimensional (2D) imagery to three-dimensional (3D) imagery and holds key patents in this area. DDMG is expanding its worldwide footprint of the highest quality visual effects and animation at the lowest possible cost through global partnerships in India and China. The company has studios in Los Angeles, San Francisco, Florida, Vancouver, Mumbai and London, and is currently establishing studios in Beijing and Abu Dhabi.