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  • Digital Domain (DDMG -5.3%), crushed on Wednesday after defaulting on its debt, is unveiling a major restructuring. Chairman/CEO John Textor has resigned from all positions with the company, and DDMG plans to shut down its Port St. Lucie, FL special-effects studio, which only in June got a very favorable newspaper write-up. The company's California and Vancouver studios will keep running. [View news story]
    http://bit.ly/O5BqKn

    delisted ....

    vision was foggy at best...

    the SEC and the 6 class action suits will hopefully determine if anyone had their fingers in the virtual cookie jar. It amazes me to see just how stupid analysts and pundits really are. PT Barnum was right.
    Oct 3 02:43 PM | Likes Like |Link to Comment
  • Digital Domain (DDMG -5.3%), crushed on Wednesday after defaulting on its debt, is unveiling a major restructuring. Chairman/CEO John Textor has resigned from all positions with the company, and DDMG plans to shut down its Port St. Lucie, FL special-effects studio, which only in June got a very favorable newspaper write-up. The company's California and Vancouver studios will keep running. [View news story]
    here we go..
    Sep 7 12:04 PM | Likes Like |Link to Comment
  • Staring Down The Market With Futuristic Picks [View article]
    given its cash burn, the company's continuing to pay big bucks for new money, its bad margins, its constant poor financial reports.... I'd say sell ... now.
    Aug 24 12:22 PM | Likes Like |Link to Comment
  • Staring Down The Market With Futuristic Picks [View article]
    Spinner.... I don't quite get why folks are still saying anything that DDMG did w Tupac was either extraordinary or patentable? DDMG has NO PATENTS as it relates to its so called "Virtual Performer" business. Do a little research and you will see that... the market sees it, today DDMG is trading at $3.70/share.
    Aug 24 12:19 PM | Likes Like |Link to Comment
  • Digital Domain Media Group: It Takes A Visionary To Speculate [View article]
    Thanks, MBA...

    For the record TinyCap...I hope you're right... but unfortunately you are totally uninformed. As a world class animator and having been in the VFX arena for longer than you've been alive ( as per your nice picture) I can tell you that you are flat out uninformed.

    Let's start with the "Holograph" business. Again, IT"S NOT A HOLOGRAM! I never said that "anyone" could do this. What I have said is that there are others that could do this... for example, WETA, ILM, Rhythm and Hues, Pixelmondo, Sony Pictures Imageworks, Animal Logic, Framestore,MPC and the Mill. As to pricing, don't believe everything you read in the papers or MTV news for that matter. All in, with filming a body double, projection systems, CGI animated head, staging, prep and production, I estimate closer to $500k. And that's for 1 (one) song. You're uninformed view of economies of scale or learned know how to bring down the price is not founded. The real expense in this process is creating the CGI head, modeling it, lighting, animating, lip-synching, editing , compositing and rendering. While those costs might have a 10-15% wiggle room, they will not get sufficiently cheaper because the work is hand done ( cannot be automated) by very expensive and talented digital artists.

    And yes, DDMG, is in the top of the pops when it comes to VFX production, the ability to create world class and photo realistic images. They have however, never shown their ability in creating content.

    As for ENDERS GAME, well, I wouldn't bet the farm on one film alone. And, even if the film is a huge success, which we all hope it will be, the payback to Digital Domain will be a long way off and possibly not very much. One should realize that if a film does $500 million in world wide box office, then only about $250 million flows back to the distributor. That is known as First Dollar Gross Profit, which only a small handful in Hollywood get to participate in ( Spielberg, Lucas, Cameron etc..) Then from the First Dollar Gross Profit comes the cost of the film, the cost of prints and ads, the cost of the distribution fee, the cost of any First Dollar Gross Participants, etc. Given DDMG's position on ENDERS GAME they will probably be Adjusted Gross Participants, which by Hollywood definition is way down the pecking order.

    The Abu Dhabi deal, the little we know about it is a further exploitation by DDMG to sign up wealthy uninformed sovereign states and hi net individuals with Hollywood stars in their eyes. Over the last 30 years we've seen the likes of Japanese, Koreans, Germans, Russians,Saudis, Indians and now the Chinese stupidly think they know how to play ball in Hollywood. They have all been taken to the cleaners.
    We have all been here before.... we have all been here before.
    May 28 02:43 PM | Likes Like |Link to Comment
  • Digital Domain Media Group: Cool Tech Doesn't Mean Profitable Firm [View article]
    It's so interesting to see how Pundits see reality, having no insight nor experience in the business that they review. It's one thing for a bean counter to review financial data to make decisions as to value but it is an entirely different thing for one to look at a "story" stock and make valid assumptions.

    Let's take a look at the "assumptions"...

    DDMG is no Pixar...
    The reason why Pixar is so highly valued is because they have a proven track record of creating blockbuster films. They truly are the only company that has had an uninterrupted string of major block buster hits. Pixar is not valued at all because of their technology. In fact, most animation and VFX houses of stature use Pixar's Renderman. Pixar has very little to do with technology and everything to do with creating incredible content. DDMG is making a transition into animated film with their LEGEND OF TEMBO. Many other companies have tried their hand at CG animated feature films and many have failed... miserably. The few that ave been successful have a few things in common, they have a world class distribution partner ( Pixar has Disney; Blue Sky has Fox and DreamWorks has Paramount) In addition they have world class storytellers. At present DDMG has no real distribution nor do they have a seasoned team of world class storytellers. Yes, they did hire the director and producer of BROTHER BEAR, but.... Also, CGI animated features always have star voices attached. DDMG has signed no talent as voices. So, to say that DDMG is the next Pixar is to say that my little leaguer is the next Barry Bonds!

    Hologram my butt!
    First off the Tupac coachella thingy was NOT a hologram! Gosh, why do folks continue to call something it is not? That would be like me calling a TV a holodeck. The Tupac Coachella phenomenon was a brilliant idea of Dr Dre. The brilliance was that someone like Tupac could be integrated into a live performance. That was the brilliance. The "technology" is nothing more than a 150 year old magic trick called "Pepper's Ghost". There was nothing special there. In fact, the Japanese have been projecting life size images of CG characters for several years. This"technology" is not proprietary... there are a multitude of companies that can create CG heads that are likenesses of dead people. DDMG owns nothing proprietary here and just like their work on films and commercials they will compete against other similar companies to get this work. In fact, Mr. Textor commented that the revenue that DDMG saw for this Tupac work was " not very significant". That's because the economics don't pan out. There might be a few strange adaptations of this but it is not a real revenue producing business of substance.

    As for major media companies buying DDMG.... All studios, Paramount ( Viacom), Fox, Universal, Disney and Sony have had over the years, owned companies like Digital Domain. And all of them except Sony have closed them down. They have done so because the Studios are well aware of this type of business as a money losing venture. And, all we have to do is look at DDMG'S financials to understand why the studios feel the way they do. Since 2006 DDMG has constantly lost money. It seems that they have lost more and more every year.

    If there is a take over... which there very well might be given the outrageous cash burn of DDMG, the buyer will most likely purchase it at a deep discount. The buyer will also most likely be a UAE, Indian or Chinese company because they are uninformed buyers and like most, don't really see what is behind the curtain.
    May 25 06:59 PM | 2 Likes Like |Link to Comment
  • Buy Digital Domain Now And Wait For It To Double In 2013 [View article]
    Chris..... I have a bridge in NYC that I think you would be interested in buying.....
    May 25 03:03 PM | 1 Like Like |Link to Comment
  • Digital Domain Media Group: It Takes A Visionary To Speculate [View article]
    It's so interesting to see how Pundits see reality, having no insight nor experience in the businesses that they review. It's one thing for a bean counter to review financial data to make decisions as to valuation ( though we should all be wary after the Facebook/Morgan Stanley debacle) but it is an entirely different thing for one to look at a "story" stock and make valid assumptions with little to no knowledge of the industry they are expounding upon.

    Let's take a look at the "assumptions"...

    "DDMG is like Pixar"

    DDMG is no Pixar...
    The reason why Pixar is so highly valued is because they have a proven track record of creating blockbuster films. They truly are the only company that has had an uninterrupted string of major block buster hits. Pixar is not valued at all because of their technology. In fact, most animation and VFX houses of stature use Pixar's Renderman. Pixar has very little to do with technology and everything to do with creating incredible content. DDMG is making a transition into animated film with their LEGEND OF TEMBO. Many other companies have tried their hand at CG animated feature films and many, in fact most, have failed... miserably. The few that have been successful have a few things in common, they have a world class distribution partner ( Pixar has Disney; Blue Sky has Fox and DreamWorks has Paramount) In addition they have world class storytellers. At present DDMG has no real distribution nor do they have a seasoned team of world class storytellers. Yes, they did hire the director and producer of BROTHER BEAR, but.... Also, CGI animated features always have star voices attached. DDMG has signed no talent as voices. So, to say that DDMG is the next Pixar is to say that my little leaguer is the next Barry Bonds!

    Holograms are the future of entertainment

    Hologram my butt!
    First off the Tupac coachella thingy was NOT a hologram! Gosh, why do folks continue to call something it is not? That would be like me calling a TV, a holodeck. The Tupac Coachella phenomenon was a brilliant idea of Dr Dre. The brilliance was that someone like Tupac could be integrated into a live performance. That was the brilliance. The "technology" is nothing more than a 150 year old magic trick called "Pepper's Ghost". There was nothing special there. In fact, the Japanese have been projecting life size images of CG characters for several years. This"technology", is not proprietary... there are a multitude of companies that can create CG heads that are likenesses of dead people. DDMG owns nothing proprietary here and just like their work on films and commercials they will compete against other similar companies to get this work. In fact, Mr. Textor commented that the revenue that DDMG saw for this Tupac work was " not very significant". That's because the economics don't pan out. There might be a few strange adaptations of this but it is not a real revenue producing business of substance. Let's do the math…. one song for Tupac cost about $500k to produce and stage. Assuming the Beatles, Michael Jackson's estate, Elvis Hendrix ( or anyone of that stature) would allow for the complete commercialization of a dead person ( which, to many is utterly tasteless), the costs would be phenomenal. And even if after time there were economies of scale, the owners of the intellectual property ( the Jackson estate for example) would want to get the best price performance possible. As I, and many others have stated, this is NOT a hologram and this is NOT proprietary technology… the Jackson estate would competitively price out the lowest cost, highest quality vendor to produce their image. It might be DDMG, but then again, it might not. So, you can see this is another services business...

    As for major media companies buying DDMG.... you're way off base. All studios, Paramount ( Viacom), Fox, Universal, Disney and Sony have had, over the years, owned companies like Digital Domain. And all of them except Sony have closed them down. They have done so because the Studios are well aware that this type of business is a money losing venture. And, all we have to do is look at DDMG'S financials to understand why the studios feel the way they do. Since 2006, DDMG has constantly lost money. It seems that they have lost more and more every year.

    If there is a take over... which there very well might be given the outrageous cash burn of DDMG, the buyer will most likely purchase it at a deep discount. The buyer will also most likely be a UAE, Indian or Chinese company because they are uninformed buyers and like you, don't really see what is behind the curtain.

    And finally, to make the analogy that DDMG is akin to biotech.... wow, what are you smoking?
    May 25 02:47 PM | 2 Likes Like |Link to Comment
  • Digital Domain Media Group: Cool Tech Doesn't Mean Profitable Firm [View article]
    actually....Textor did get the majority of his shares at no cost.
    And... even though he has $75m today, that amount has some serious restrictions as he is the CEO and a 10% owner. Additionally, the company has lost serious amounts of money since he acquired it in 2006... in fact, the company seems to lose more money every year. And, if you understood the business, whilst the company has a "market valuation" in excess of $300m, in fact, that valuation is all hype with no substance whatsoever. There for, after Textor has unsuccessfully tried to monetize his position over the last 6 years, he finally has a way to cash out.... a publicly traded stock, huge salary and benefits, outrageous options.... and while he would of course want to drive the stock price as high as possible, he knows that given the cash burn, he has very little time to monetize his position... they will, at some point in the very near future, run out of cash,... so... given Textor's position... he wants to make sure he gets as much cash out before the company goes bust. And since most of his shares have a no cost basis... selling his millions of shares at any price is far superior to not being able to sell his shares at all.
    May 18 03:26 PM | Likes Like |Link to Comment
  • Digital Domain Media Group: Cool Tech Doesn't Mean Profitable Firm [View article]
    @Wharton05..."Keep in mind: Texter owns $75m worth of the company. He is certainly aligned with the shareholders."

    Not necessarily... the shareholders paid good money for their shares, Textor got his at mostly no cost. Also, Textor knows full well how difficult it is to run this business... he's run it for 6 years, ALL at large losses and getting worse very year. Textor might just be looking to maximize the share price as soon as possible so that he can sell... Even if Textor's share dropped to a $30MM number... he'd be a happy boy, assuming he could sell.
    May 17 06:14 PM | Likes Like |Link to Comment
  • Digital Domain Media Group: Cool Tech Doesn't Mean Profitable Firm [View article]
    The real question for the investor call on May 16th should be all about DDMG's cash situation... what is your cash position, what has been your monthly burn rate, how many notes come due, how will you finance TEMBO...?? How much are your payables? What do you owe other vendors?

    This is a company on the edge... they are cash restrained after an IPO, after a $135MM gift by the state of FLA, after a note from a motion picture studio, after a huge compensation package by their CEO... Right now, it's about cash.....
    May 14 02:50 AM | Likes Like |Link to Comment
  • Digital Domain Media Group: Cool Tech Doesn't Mean Profitable Firm [View article]
    A CGI feature film that is successful has a few very interesting components:
    1. A great story/screenplay. This is always the tricky part, oftentimes producers will hire world class screenwriters in that specific genre with a world class track record. DDMG's CG film, The Legend of Tembo is being written, directed and produced by two ex Disney folks. Their only top line credits were for Disney's Brother Bear... a film that performed moderately... $85 MM Domestic.

    2. A Distribution Partner. To date, DDMG has only one distribution partner, a fledgling Chinese company that has distributed a few films in China only. TEMBO has no other distributors. Most significantly they will need a major US Studio ( Pixar has Disney).

    3. The average CG animated feature costs $135MM. DDMG's financial statements say that they have set aside $8.9MM for this production.

    4. A CGI feature film on average takes 4 yrs to complete. Additionally, a feature film does not start to see returns until well after its release.

    5. Star voices are important to market and sell the film. To date, DDMG has not signed any major stars for TEMBO.

    While TEMBO looks like an interesting project, and I wish DDMG luck on producing a PIXAR like film, the odds are stacked way against them.

    That's a look at their animated film business.

    If anyone cares, I could, at length give insight into the education business and the "hologram" business as well.

    Finally, DDMG raised another $35MM today. On first blush, that's exciting news. But one has to look at who they raised the money from (existing note holders whose note was coming due), the fact that it dilutes present shareholders, what their current cash position is and what their burn rate is ( maybe that's why they raised more cash) and one gets a much clearer picture of this "raise".
    I wish DDMG luck... but if I could get my hands on some, I'd short so much that I'd make the Lollipop twins look like Shaq.
    May 10 04:16 AM | 3 Likes Like |Link to Comment
  • Digital Domain: Beware The Hype [View article]
    Betting the farm on a single movie? The film's release date was pushed back till Nov 2013, looking at DDMG's cash position, let's hope they don't burn thru it till then.
    Apr 27 09:57 AM | Likes Like |Link to Comment
  • Digital Domain: Beware The Hype [View article]
    Tupac is back- A holograph of a dead rapper brings life to a stagnant stock. DDMG had been languishing since the IPO last November opening at $8.50 and trading at about $5.00 a few days ago. Then Coachella happened, The Wall Street Journal ran a story about raising the dead and the incredible holographic projection of Tupac rapping w Dre and Snoop. The stock has jumped almost $2 per share or 33% in just a few days. DDMG, as well as several other hi end VFX companies have been creating virtual actors for years... Benjamin Buttons, Michael Jordan, James Brown to name but a few. The projection system used to project the image at Coachella was not anything new... and it wasn't created by Digital Domain. DD was most probably paid a fee to create Tupac, just like all other VFX projects... DD owns no proprietary software and probably does not nor will it receive royalties for its work at Coachella. And can others produce similar quality animation? Yes, by all means... ILM, SPI, WETA Rhythm and Hues can do the same.... create incredible images that of which they have no ownership nor any financial participation in.
    Apr 24 11:23 AM | Likes Like |Link to Comment
  • Digital Domain: Beware The Hype [View article]
    1 . Revenue for DDMG in 2011 was made up solely by VFX. Most from Venice and some from Vancouver. Total revenue was approx $95.6 million. VFX for feature films was $75.5 million, VFX for Commercials was approx $20.1 million.

    2. Operating Loss was $(75.1) million. Corporate expenses including overhead, G&A, sales, etc were $74.9 million, suggesting that VFX work had negative margins BEFORE overhead, sales and G&A allocations. Traditionally, margins before selling,overhead and G&A allocations are 25% or so in traditional VFX studios. After these charges are allocated, margins traditionally are between negative 5% and positive 3%, most often at breakeven. This shows a significant erosion of margin before any allocated expense.

    3. Corporate expense of $(74.9) million is HUGE. I am not sure what those expenses are but one can assume that they are additional corporate overhead and/or expenses utilized for new businesses that are still not throwing off any revenue. Mr. Textor has described his new business opportunities as content creation, education and military/medical simulation businesses.

    4. Old Business- VFX is a non business and has been described by Textor as a broken business model that cannot be fixed. He has further stated that he has no intention of growing this broken business, and sees this base business as a loss leader to leverage new and profitable businesses.

    5. New Businesses

    a. Content Creation
    1. Participation in Feature Films as a VFX supplier- Textor sees this as an opportunity to leverage the cost of VFX to Feature Film Studios and Producers to participate in the upside back end of the profit stream of Feature Films. The model is that DD will further reduce the pricetag of VFX (already priced with little margin) on a given picture and trade that discount for profit participation. It is well known in the film industry that studios rarely pay out on profit participation. Under this scenario, DD would have very little effect on the production as DD would still be acting as the VFX provider ( as always) but would not have a significant role as a producer or content owner. For example, DD had taken such a role on 2 films so far… ENDERS GAME and PARADISE LOST. PARADISE LOST has been put in turnaround as the studio (Legendary Pictures) canceled the film. DDMG has written off a $(4.8)million loss for the work that DD had done prior to Legendary canceling the picture, a hefty loss for a VFX company. DDMG then negotiated a $3MM convertible loan from Legendary to shore up their cash position. This note is payable in full by July 18, 2012.

    2. Participation in Feature Films as a content developer- Textor has decided that DDMG, like Pixar, Blue Sky and PDI before him should be in the CG animation business. To those ends DDMG has created a new business called Tradition Studios located in the state of Florida. Tradition Studios, a 130,000 sq foot facility located in Port St Lucie FLA was built anew in 2011 and was paid for in its entirety by a bond issued by the city of Port St. Lucie.

    Additionally, the city offered another $8.9 MM to fund DDMG's first animated film THE LEGEND OF TEMBO, a story about an African baby elephant. To those ends, Textor has promised the city that he will hire 500 employees with an average salary of $62,000 per year by 2014. While Pixar has Disney to distribute their films, Blue Sky has Fox and PDI (now DreamWorks Animation) has Paramount as distributors, DDMG has no US distributor and the only distributor announced for TEMBO is a Chinese distributor Galloping Horsehttp://http://imdb.to/IL6CIc (which has only distributed 2 Chinese films in China). To date, DDMG has not announced a domestic distributor nor any talent voices. Industry standards state that most CGI animated films over the last 15 years have taken approximately 4 years to complete and cost on average of about $125million. Additionally, Disney had opened and shuttered their failed attempt to house an animation facility in Orlando….In a statement, David Stainton, president of Walt Disney Feature Animation, said, “This difficult decision was based on what is best strategically for our business in both the short and long term. Having the entire animation group working together in Burbank under one roof will further enhance our filmmaking process."

    b. Education- DDMG has announced a new business venture with Florida State University called Digital Domain Institute. Textors' most recent statements about using students as free labor to provide 30% of DD's workforce ( and having DD profit not only from the free labor but since DD owns DDI, the students would actually be paying DD for " the privilege of working for free" at DD) caused a firestorm in the industry. Mr Textor held several meetings w DD employees and had interviews explaining that he said stupid things at times and that he really didn't mean what he said. DDI has made claims that for tuition of $28,500 for a three year certificate, the student will be able to work side by side with animation and CGI professionals and receive credits on major feature films. Many professionals in the field have criticized Textor and have said that DDI's claims are impossible to uphold. Additionally, the rank of digital creators in media has expanded geometrically as the market has become a global one. Today we see thousands of young men and women looking for jobs that are difficult to come by as the population of digital artists surpasses the need. While private education for profit models have been successful, lately these colleges have come under great scrutiny by Washington (http://huff.to/Jp072u ).

    In addition, Florida State UNiversity has also been quite controversial as the Ultra Conservative Koch Brothers are major supporters of FSU and it has been reported that they have major input into who the faculty is.. (http://bit.ly/IL6CIm ). Finally, Textor has said that DDI will be a boon to CGI and that educating American students is important to him and that he is very proud about DD's track record in keeping jobs in the good ol USA. It should be noted that Mr. Textor has opened studios or is in conversations with people that want to open studios in China, Abu Dhabi, India, England, Australia and Canada.

    c. Military Simulations and Medical Simulations- According to some the military simulation as well as the Medical Sim markets are a multi billion dollar markets (http://bit.ly/Jp072x) and Textor is very interested in taking the skills and software developed by DD to become a major player in this field. I wonder what the response of the DD employees, who have opted to be in the film business will think about this?

    6. IPO

    a. The first IPO attempt by DD in 2007 failed and did not get traction on the Street at all.
    b. The second IPO 2011
    1. Originally the 2011 Prospectus had on its cover sheet the Investment Banking firms of Barclays Capital and Janney Montgomery Scott as underwriters . However by the time of the IPO in November, the two aforementioned banks were no longer associated with the IPO and two new underwriters were… Roth Capital and Morgan Joseph Triartisan.

    When the DDMG prospectus was first distributed the Company had planned to raise $115 million at a share price of between $12-15 per share. The use of proceeds as stated in the original S1 was to be …."to pay in full DD's outstanding indebtedness and the remaining proceed to facilitate growth in for profit education and advancing the development of the production of animated and VFX driven feature films.."

    The IPO floated in November of 2011 and netted proceeds of $33.2 million which were allotted to the Company after fees at a price of$8.50 per share, significantly less that the Company hoped to raise.

    Prior to IPO, CEO Textor bought $10MM worth of DDMG stock at $8.50. Therefore a significant portion of the DDMG IPO was funded by Textor himself. The news of Textor's purchase of DDMG stock was big news… (http://onforb.es/Jp05ro ) signaling to the investor that the CEO might know something that the investor did not and if the CEO was willing to bet $10mm of his own money at $8.50 per share…. maybe you should too. Approximately one month after the IPO, the DDMG board approved a stock repurchase program of $10MM. (http://on.wsj.com/IL6AjR ). Several analysts were shocked at this repurchase plan as the company wanted to raise $115MM, then only raised $33MM ( of which $10MM was Textor's) and then approved a repurchase of $10MM of stock leaving only a $23MM raise only 20% of their original amount.

    7. CEOs/Presidents/Senior Management
    a. Brad Call - In 2006 when the Company was acquired by Wyndcrest, Brad Call was the President. After several months Call was involved in a law suit with the new owners and Textor. Call alleged that he was fired for refusing to falsify financial projections to new investors. The case went all the way to trial after a long and expensive law suit and the jury awarded Call $2mm for breach of contract and wrongful termination. Call also brought charges against Textor for fraud but the jury was not asked to rule on fraud because " The jury was instructed that for his claim to be upheld, Call only had to believe he was preventing a crime, not that an actual fraud was taking place."http://bit.ly/Jp072C

    b. Carl Stork- As a member of the Wyndcrest team that bought DD in 2006, Stork was brought into a management position as Vice Chairman and acting CEO reporting directly to Textor. Stork sat on DD's Board of Directors and had an equity ownership in the Company. It should be noted that neither Stork nor Textor had actually invested any of their personal money in the acquisition of DD. Stork was removed as acting CEO by Textor but still held stock in the company and sat on the board when Stork sold his shares in DD back to the company for a sum of $530,000. At present Stork is suing Textor ( case No. 2:10-CV-07631 JHN (PLAx) in US District Court for fraud, alleging that Textor
    secretly sold his personal shares in DD to DDH (Digital Domain Holdings, a separate company) for millions of dollars in consideration for himself. The complaint further states that Textor did so to leverage Textor's shares in DD as part of a scheme to defraud governmental agencies into providing tens of millions of dollars in taxpayer cash and property to DDH for Textor's own personal gain." In addition, the claim continues and alleges that Textor hid information from Stork and the DD board regarding a bona fide offer from an Indian company to buy DD for $65MM. The trial has been continuously postponed but is now set for trial in late June. BTW, the management lock up provisions, the date when management will be able to start selling their personal stock is in May 2012.

    c. Mark Miller - An alumni of Industrial Light and Magic, George Lucas' world renowned visual effects company in San Francisco joined DD as its President in September 2006. Mr. Miller as well as two other executives joined DDhttp://http://bit.ly/Jp072E . Miller, a VFX industry veteran had spent over two decades at ILM as a VFX producer overseeing VFX production on many films and was a longtime VFX producer on Michael Bay films in particular. Mr. Miller had no experience whatsoever in running companies. Textor was very excited about hiring Miller and his two lieutenants Cliff Plumer and Kim Libreri (head of technology and visual effects supervisor ). As Mr. Miller was a San Francisco resident, he continued living in SF and DD opened a satellite office in the Bay Area. Mr. Miller would commute and be in the LA facility 3 days a week. After a few years Mr. Miller had decided to leave the Company.

    d. Cliff Plumer- As part of the three new execs brought in from ILM, Cliff Plumer, after Mark Miller's departure took the reins at DD. Cliff also had no experience running a company but as DD's newest CEO Cliff remained with DD until just after the IPO. It should be noted that Plumer was granted 817,000 shares of common stock of DD and On January 5, 2011, the Company granted Plumer the option to purchase 517,000 shares of Common Stock at $0.01 per share that vested immediately and the option to purchase an additional 300,000 shares at $3.00 per share vesting quarterly over two years. At today prices of $6.00 per share, Mr. Plumer in addition to his 2011 salary and bonus of over $1.25 million received stock worth $4.9MM at a cost of $903,000 or a profit of about $4MM on his stock in addition to his salary and bonus.

    e. Michael Bay- The formidable and very successful film director (TRANSFORMERS) was part of the original team of Wyndcrest Holdings that bought DD back in 2006. Mr. Bay was named as Co Chairman of the Company. He had no day to day oversight and continued to work with other VFX companies while he was Co Chairman of DD. Mr. Bay made no personal monetary investment into DD and Mr. Bay is no longer a shareholder in DD having sold his interest back to DD for the sum of $3MM.

    f. John Textor- The great great grandson of Ethel Dupont of the Dupont family, went to college with Michael Bay and has been involved in lots of startups over the years. He has had some success and a few failures. He was the CEO of SIM Snowboards which didn't go so well.http://bit.ly/IL6AA7
    Textor was the CEO of BabyUniverse, a publicly traded company which also did not end well. According to the Palm Beach Post, John has had issues with the IRS and has been involved in a few lawsuits over the years (http://bit.ly/IL6CIq. Textor is now Chairman and CEO of DDMG. At present he owns at least 25% of all DDMG stock. His compensation in 2011 was $750,000 in base salary, bonus compensation of $ 407,000 , he received 1,080,000 stock options at a price of $9.63 per share ( at present way "out of the money since DDMG shares are trading at about $6/share), he was also awarded 1,500,000 shares at $.01 per share ( at present worth about $9million). Textor also received options to purchase up to 839,105 shares at an exercise price of $.01 per share because of a loan the he personally guaranteed for the company. Textor did exercise those options that had a fair market value of $5,558,439. His employment contract guarantees him an increase in his base salary of at least 7% per year. His employment is in effect until March 2014 and if the contract is terminated by the board for any other reason than "cause" , the company will continue to pay Textor his full salary for 36 months or the end of his contract, whichever is less.
    Apr 23 08:06 PM | Likes Like |Link to Comment
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