LONDON: DNEG, a leading visual effects (VFX) and animation studio for the creation of feature film, television and multiplatform content, has announced that Novator Capital Advisers, LLP (Novator) has invested $250 million in subsidiaries of Prime Focus Limited, the parent company of DNEG and personal holdings of its founder Namit Malhotra.
The Novator investment enables the Group to streamline its structure, consolidate minority investments, and position DNEG for future growth. Malhotra will continue in his current role as DNEG Chairman and CEO and will increase his ownership stake in the parent company from 35% to approximately 70%. Novator will own a 15% stake in DNEG.
DNEG has won five Academy Awards® for Best Visual Effects in the last seven years (six in total), Namit Malhotra, DNEG Chairman and CEO as well as multiple awards for its visual effects work on high-end episodic shows for OTT and streaming clients. With the investment from Novator, DNEG is well positioned to capitalize on the high demand for its services in the burgeoning streaming content marketplace and explore opportunities in adjacent categories and formats, including gaming and original intellectual property (IP) content development and production. PricewaterhouseCoopers’ annual “Global Entertainment & Media Outlook” recently forecast global streaming revenues to hit $94B by 2025.
“The global explosion in demand for high-quality content across platforms has given rise to significant opportunities in the media and entertainment market, and we have identified DNEG as having all of the key components in place to take full advantage of these opportunities. Building on its award winning legacy, we are backing Namit’s vision to accelerate DNEG’s evolution from pure services provider to content production and gaming services powerhouse for the entire eco-system” Thor Bjérgdlfsson, Chairman of Novator, who will join DNEG’s Board of Directors later this year, said.