Digital Domain Media Group Inc. (OTC: DDMGQ) , the company that created the Tupac Shakur hologram from the 2012 Coachella festival, has filed for Chapter 11 bankruptcy.
Digital Domain, which went public in November, has seen its share-price decline from a peak of $9.20 per share in May, to just about 55 cents Tuesday -- a decrease of 94 percent, CNN reported. The Los Angeles-based company had previously warned of long-term debt and overhead difficulties in the months leading up to the filing, the news outlet reported.
Tupac Hologram via Twitter Use Digital Domain Media, the company that created the Tupac Shakur hologram from the 2012 Coachella festival, has filed for Chapter 11 bankruptcy.
In addition to the Tupac hologram in April, Digital Domain had a hand in special effects for several Hollywood blockbusters, including "Transformers," "Pirates Of The Caribbean" and "Titanic." In 2009, Digital Domain took home an Oscar for its work on age-reversing Brad Pitt's character in "The Curious Case of Benjamin Button."
According to Rolling Stone, Digital Domain had a relatively small revenue stream, since it was hired by Hollywood studios on a contract basis. Although the company had boosted its bottom line, by dipping into the live performance market with its holograms, the resignation of CEO John Textor, and closing of its offices in Port St. Lucie, Fla., which included the layoff of around 320 employees, also weighed on its share price.
Private investment firm Searchlight Capital Partners plans to buy Digital Domain's core production business for $15 million, pending approval of the bankruptcy court, Rolling Stone reported.
Digital Domain reportedly remains on schedule for a project with Lionsgate to make a film adaptation of the beloved sci-fi novel "Ender's Game." The movie is scheduled to be released Nov. 1, 2013.
"The postproduction work remains on schedule," a Lionsgate representative told CNNMoney. "We're confident that we will release the film as planned."
Tupac Hologram Snoop Dogg and Dr. Dre Perform Coachella Live 2012