×
You will be redirected back to your article in seconds

Prime Focus Gets $53 Million Equity Investment

CEO: Vfx studio is looking to buy companies, not sell

Visual effects and 3D conversion company Prime Focus World has secured some $53 million in additional equity investment and is not for sale, its CEO said Friday.

Indiatimes.com had reported that India-based Prime Focus Ltd. had appointed Macquarie Captial to find buyers for Prime Focus World, but CEO and founder Namit Malhotra said the report is wrong. “We raised this capital for Prime Focus to be able to build itself up further and actually look for acquisitions. We’re looking to buy companies, not sell,” adding that Macquaire had been asked to provide advisory services on the equity investment.

This latest round of investment will come from Macquarie Capital in two stages: $38 million in the first phase and $15 million in the second. The cash infusion comes following a $10 million investment from China’s AID Partners Capital in March and a $70 million investment from Standard Chartered Private Equity.

“There’s a view of the world that the vfx industry is defunct and doesn’t work and no financial group in the world is interested in putting money in it,” said Malhotra. “And I think what we are presenting is quite the opposite. What we believe is there is good opportunity if you have the right business model, financial partners and strategic players on board to boost this industry to be operating on a more globalized basis.”

Prime Focus was an aggressive bidder for bankrupt Rhythm & Hues earlier this year but was outbid by Prana Animation. Prime Focus’s recent credits include “World War Z” (pictured), “White House Down” and “The Great Gatsby.”

Prime Focus World’s leadership and creative centers are in Vancouver and London, with headquarters in Los Angeles and support services in India. The company also recently announced it is setting up a production hub in China. Malhotra said the new China facility will serve both domestic Chinese and Hollywood productions. “The joint venture we just announced gives us the ability to take the entire bouquet of services we provide to the Chinese market,” said Malhotra. “We should be able to provide complete services from China depending on which way projects actually flow.”

Malhotra said following Prime Focus’s investment in Vancouver, it has had no plans to open a facility in Montreal to take advantage of the increased incentives there, but “it’s not off the radar.” As for the call for greater California tax incentives for post, he said, “I would obviously welcome that move, because some of the best talent worldwide is in California. … Clearly the challenges are beyond any specific organization to control, and we certainly would promote that if there was a prospect of that happening.”

More Biz

  • Santos Dumont

    Mipcom: International TV Output Picture Changing for U.S. Majors

    The global import-export strategies of the U.S. majors are in flux as the world’s major content companies gather this week in Cannes for the annual Mipcom market and conference. Disney, WarnerMedia and the other handful of media conglomerates that control the vast majority of the U.S. market are in the midst of a radical transition [...]

  • Jane Fonda Arrested

    Jane Fonda Arrested in D.C. During Climate Change Protest

    Jane Fonda was arrested on Friday in Washington, D.C. during a climate change protest, Variety has confirmed. “Today, the United States Capitol Police arrested 16 individuals for unlawfully demonstrating on the East Front of the U.S. Capitol,” Capitol Police communications director Eva Malecki said in a statement to Variety. She added that all were charged with crowding, [...]

  • Firefighters battle the Saddleridge fire in

    Saddleridge Fire Forces Evacuations, TV Production Shutdowns

    A wind-whipped wildfire has spread across parts of the San Fernando Valley north of Los Angeles and forced evacuations, threatened thousands of homes and closed parts of five major freeways. The Saddleridge fire has prompted mandatory evacuations affecting about 100,000 people between Porter Ranch, Granada Hills and Sylmar. Mandatory evacuations have been called for about [...]

  • amazon-studios

    Amazon Studios Pacts With Howard University for Entertainment Education Program

    Howard University and Amazon Studios have teamed to launch Howard Entertainment, a two-semester program based in Los Angeles that offers Howard students the ability to take courses, network with Amazon industry partners and gain work experience in the entertainment industry. The inaugural program will begin January. The curriculum and immersive experiences will start with academic [...]

  • Remembering Prince

    Prince Estate Slams Trump Campaign for Playing ‘Purple Rain’ at Minneapolis Rally

    The Prince Estate strongly criticized the Trump campaign for playing “Purple Rain” at a Minneapolis rally in which the president made multiple aggressive and juvenile comments about Democratic leaders, Bruce Springsteen, Beyonce and Jay-Z. In a statement posted on social media, the Estate wrote, “President Trump played Prince’s ‘Purple Rain’ tonight at a campaign event [...]

  • Charlie Rose Sexual Harassment

    Charlie Rose Wins Dismissal of Retaliation Claim in Harassment Suit

    A New York judge on Thursday dismissed a claim that Charlie Rose retaliated against three female employees who complained of sexual harassment. Judge Doris Ling-Cohan found that while Rose had allegedly disparaged the women — calling one a “f—ing idiot” and another a “f—ing kindergartner” — his comments did not amount to retaliation under the [...]

  • James Murdoch

    James Murdoch's Lupa Systems Takes Minority Stake in Vice (Report)

    James Murdoch has purchased a minority stake in Vice Media, the once-upstart brand that is trying to reconfigure itself as many prominent digital-media brand grapple with a wave of consolidation, according to a new report. The Financial Times reported that Murdoch’s investment vehicle, Lupa Systems, has secured a small ownership stake in Vice. A spokeswoman [...]

More From Our Brands

Access exclusive content