China’s largest conglomerate Citic Limited and Japan’s SoftBank Group Corp’s venture capital and private equity arm Softbank China Venture Capital (SBCVC) have made $25.7 million strategic investment strategic investment in Hong Kong-based Digital Domain Holdings.
The investment that marks Citic and SBCVC’s entry into the virtual reality business was made by an acquisition of convertible notes and subscription of new shares in Digital Domain Holdings which is a creator and proprietor of visual effects content and owns the visual effects firm Digital Domain 3.0.
“The net proceeds raised from the subscription will be approximately $25.7 million, and are intended to be applied towards media entertainment segment and used for general working capital purposes of the Group,” Digital Domain said in a statement.
CITIC and SBCVC have also undertaken to the company pursuant to the subscription agreements that each shall agree to the extension of the maturity date of the convertible notes by no more than five years.
“As Digital Domain’s footprint broadens, we are always looking for opportunities to grow our media and entertainment business and further penetrate the VR market,” said company’s Executive Director and CEO Daniel Seah.
He added that the introduction of strategic investors into the company not only represents their confidence in Digital Domain’s solid business foundation, sound strategy and robust potential, but also offers Digital Domain additional funds, increasing our capital base for future business development.
Digital Domain in the past has collaborated with companies like DreamWorks Animation and Democratic National Convention Committee, while officially expanding its business to the Greater China market in 2016 through acquisition of Post Production Office, thereafter renamed as DDPO. It also concluded a strategic partnerships with media and entertainment industry giants in the region including Youku, Warner Music, and CTi TV.