Technicolor Acquires VFX House The Mill for $293.4M

2001: "Gladiator"
DreamWorks/Courtesy of Everett Collection

The impact of the exploding cable universe and reality TV began to take its toll on the Academy Awards. For the first time, the telecast came in No. 2, losing to CBS' "Survivor." Also, less mainstream films were in play for best picture, including "Crouching Tiger, Hidden Dragon."

Technicolor announced the acquisition of The Mill, a London-headquartered visual effects and content creation studio for the advertising industry, for €259 million (roughly $293.4 million).

Founded in 1990, it's recently-honored advertising work includes commercials for Audi, SSE and DirecTV. It previously also targeted at feature work, and was the lead VFX house on Gladiator, which won an Oscar for VFX.

It has operations in London, New York, Los Angeles and Chicago.

"In acquiring The Mill, we are executing on our Drive 2020 strategic objective of enhancing our market position in visual effects while improving profitability and revenue growth concurrently with accelerating deployment of emerging technologies," said Technicolor CEO, Frederic Rose, in a released statement. "In The Mill, we have found a company that aligns with our focus on excellence in talent, technology and operational performance. It is a perfect fit."

According to the acquisition announcement, Technicolor's Drive 2020 strategic roadmap includes a goal to focus on visual effects and digital creation across all segments of high-end content, including cinema, TV and advertising.

With this acquisition, Technicolor's production services would account for approximately 40 percent of it entertainment services revenues, the company said.