DNEG aims to capitalise on the high demand for its services in the streaming content marketplace and explore opportunities in adjacent categories such as gaming
Novator Capital Advisers, LLP has invested $250 million in DNEG, a subsidiary of Prime Focus Limited. As per the company, Novator’s investment in DNEG enables the company to streamline its structure, consolidate minority investments, and position DNEG for future growth. Namit 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 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 aims to capitalise 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.
Thor Björgólfsson, chairman, Novator, will join DNEG’s Board of Directors later this year. The global explosion in demand for high-quality content across platforms has given rise to significant opportunities in the media and entertainment market, Björgólfsson said. “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 Malhotra’s vision to accelerate DNEG’s evolution from pure services provider to content production and gaming services powerhouse for the entire eco-system,” he added.
For Namit Malhotra, chairman and CEO, DNEG, with the backing of Novator, the company will take the next step in scaling and widening the scope of its business. “In my 25 years of experience building a global business, I can say without doubt that I have never seen such an explosion in demand for our services or a better time to form new content creation partnerships. The doubling of my equity investment in DNEG’s parent company is testament to my full commitment and total belief in the opportunity. DNEG is perfectly positioned to strategically align with our clients and partners to create compelling and successful content for global audiences, and as some of our key clients move into new areas such as gaming, our strategy and the opportunity dovetail perfectly,” he stated.