Digital Domain Shares In Freefall As CEO Quits Amid Fight With Creditors

Weird things are happening at the James Cameron-founded company that’s responsible for special effects and 3D conversion on many Hollywood productions including Lionsgate’s Ender’s Game. Digital Domain‘s stock is down nearly 34% today to a piddling 65 cents a share and it announced in an SEC filing that CEO and chairman John Textor resigned “effective immediately” with no exit agreement or arrangement. Textor’s Wyndcrest Holdings led an investor group that bought Digital Domain in 2006. He told the board that he left because he’s “in profound disagreement” with the company’s decision to close its animation and visual effects studio in Port St. Lucie, Fla. “Our incredibly talented artists and filmmakers were building something truly special in Port St. Lucie, not just our favorite first film, The Legend Of Tembo, but also our first home, Tradition Studios.” By leaving he says he should have “greater flexibility to independently consider other strategic alternatives for the Company, the Port St. Lucie studio and the people affected.” Digital Domain says the cutbacks in Florida are part of “a strategic realignment that will enable it to focus its resources on its core business.” Studios in California and Vancouuver “intend to operate without interruption.” The board gave COO Ed Ulbrich the additional title of CEO of Digitial Domain Productions while Michael Katzenstein runs day-to-day operations. Katzenstein is is a senior managing director of FTI Consulting, and on August 29 was also named Digital Domain’s interim COO. (more…)

This article was printed from