DNEG has announced it will no longer become a publicly-traded company due to “current unfavourable SPAC market conditions and other factors”.
In January the VFX house revealed plans to merge with Sports Ventures Acquisition Corp, which would lead to DNEG becoming public.
Namit Malhotra, DNEG chairman and CEO, said, “Due to the headwinds in the SPAC marketplace and general market volatility, we have decided to terminate our SPAC process with Sports Ventures. [They] have been great partners in this process, and we wish them well as they move forward.”
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“We feel incredibly optimistic about DNEG’s future and the company continues to demonstrate impressive financial results, with our highest-ever revenue growth announced earlier this week,” added Malhotra.
“Our strong pipeline reflects the significant demand for our industry-leading visual effects and animation services, as evidenced by our recently announced multi-year deal extension and VFX services renewal agreement with Netflix through 2025.”
Sports Ventures said it will consider other acquisition opportunities, subject to market conditions and timing.