DTS, the digital technology company known for its DTS Digital Sound product that competes with Dolby Digital and SDDS, has sold its Digital Images business to ADAG’s Big Entertainment. According to the release, the deal closed on April 4 for $7.5 million in cash. This marks DTS’s exit from the image enhancement and restoration services business.
This effectively adds to Big’s digital service enterprise focus. ADAG already has a controlling stake in Adlabs, which currently holds a large market share in the film processing business. Additionally, Adlabs Films is a strategic investor in Prime Focus, another end-to-end post production service house, where it holds 4.66% of the existing equity capital. Moreover, Reliance Capital, holds about 14.53% stake in Prime Focus.
This deal will expectedly help Big consolidate their entire post-production portfolio that will should be overloaded once Big Movies gets its feet off the ground, its TV initiative takes off and Big Animation (a mythological title currently in the pipeline) goes live.
Nikhil adds: This also gives Big Entertainment an entry into the US market, and will allow them to outsource processing and post production work to India. Warner Bros MPI already has a post-production alliance with Prime Focus.