Prime Focus, Warner Brothers enter into alliance

Prime Focus Ltd has informed that Warner Bros. Motion Picture Imaging and Prime Focus have entered into a strategic alliance that will allow both Companies to expand their abilities to offer their state of the art digital post production capabilities to filmmakers on a global scale. The agreement will provide filmmakers around the world with access to the expert talents and services both companies have been providing through their state of the art facilities. It also allows both companies to manage their workflows more efficiently between Warner Bros. MPI in Burbank, and Prime Focus's facilities throughout multiple locations in India and London as well as in New York, Vancouver, Winnipeg and Los Angeles.

"As part of our global agenda of providing high end digital creative services to clients around the world, this alliance with Warner Bros allows us to extend our pipeline across continents and various verticals within our business. Warner Bros. is continuously creating content across a wide variety of mediums and on a scale that will be well served by this expanded pipeline," says Namit Malhotra, Managing Director, Prime Focus. He adds, "The strategic alliance with MPI underscores our ability to service not only Warner projects, but also all the other esteemed clients of the Company. It is indeed something that will create great value going forward for both Companies and we truly are delighted with the development of this relationship."

The two Companies will be able to move content seamlessly from facility to facility, using the most cost efficient method, which will allow them to process work in the time zone that most closely meets individual film maker's needs and schedules. It is also expected that Prime Focus' world class digital VFX capabilities will compliment and enhance the offerings and services required by the increase of local productions developed globally.

Warner Bros. Motion Picture Imaging (MPI) is a state-of-the-art post-production facility. Located on the Warner Bros. Studio lot in Burbank, MPI's services and experts are equally available and have been used by Warner Bros. films as well as those of outside clients. MPI is also a leader in the field of film preservation and restoration and has developed a unique and patented process to digitally restore classics from the vast Warner Bros. Studios film and television library as well as those of other clients. The facility has received safety certification to store and work with nitrate film stock.

Prime focus makes acquisition in US

"In furtherance of the earlier intimation made by the Company that the Prime Focus Group is in advanced negotiations with two unlisted entities in North America, the Prime Focus Group is close to reaching final agreement to acquire Post Logic Studios (with offices in Hollywood and New York) and Frantic Films (with offices in Los Angeles, Winnipeg and Vancouver) for a total consideration of USD 43 million, pending finalization of deal structure and applicable regulatory and statutory approvals.

These acquisitions will add to Prime Focus' global footprint, which currently entails six visual effects and post-production facilities across India and four facilities in London. The acquisition will also add rights over 55,000 square feet of prime real estate in the heart of Hollywood, and a talent pool of 200 new staff members.

The acquisition will give the Prime Focus Group access to the R&D division of Frantic Films, which develops and markets visual effects software solutions. Frantic Films has worked on top Hollywood films including Fantastic Four: The Rise of the Silver Surfer, Grindhouse, Superman Returns, X-Men 3, Poseidon, Mr. Miagorium's Wonder Emporium and Journey 3-D.

Prime Focus Group plans to continue operations of both Post Logic Studios and Frantic Films as independent facilities, providing both Companies access to a talent pool of over 400 visual effects artists worldwide."

Prime Focus acquistion plans

Prime Focus Ltd (Prime Focus) has announced that the Company is in discussions with two unlisted entities ("US Entities") based in North America in relation to acquisition of the US Entities by Prime Focus either directly or through its subsidiaries (together the "Prime Focus Group"). The Transaction would be subject to due diligence and execution of definitive agreements.

The US Entities operate post-production and visual effects businesses catering both to the film and the television broadcast industries. If successful, the proposed acquisition would be a material acquisition for the Prime Focus Group as the US Entities', aggregate revenue for [2007] when added to the consolidated revenue of the Prime Focus Group for the same period, would represent a third of the combined revenue of the consolidated Prime Focus Group after such acquisition.

Prime Focus believes that the proposed acquisition would be in line with its strategy of acquiring Companies which are strategically located, have a verifiable track record, relationships and a talent pool but due to a variety of reasons are not generating profits. The Company intends to utilize its management capabilities and industry knowledge to turn around such loss making entities (including the proposed acquisition) into profitable businesses and create a global business model. Within the last 18 months Prime Focus has already carried out a similar exercise with VTR plc.

Prime Focus Ltd

Prime Focus Ltd has informed that the Company has executed a term sheet with UTV Software Communications Ltd, wherein the Company has agreed to acquire entire Post Production business ("Business") including all related equipments and business contracts from UTV Software Communications Ltd. In addition, UTV Software Communications Ltd has also agreed to assign / transfer all rights, title, ownership and usage of the brand, mark and related intellectual property right in respect of the brand "USL" in the entire world in perpetuity in favor of the Company. The aforesaid is subject to all regulatory approvals and other approvals.

Prime Focus

The media had reports that Prime Focus Limited may go for an American acquisition with an deal size of over $ 20 - 25 million.

In order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.


Prime Focus Limited has vide its letter inter-alia stated, "We would like to inform that the Company has no such proposal at present for the American acquisition as reported by the media"

ISEC - Prime Focus

ISEC expects PFL to follow its strategy of acquiring a high-revenue, low-profit company at relatively cheap valuations and profiting from outsourcing low-end work to India

ISEC recommends BUY