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Bay produced Dream Works' I Am Number Four, based on a series of novels by Pittacus Lore published by Harper Collins Children's Books. Bay and Wyndcrest Holdings, a Florida-based investment firm, acquired the digital effects company Digital Domain from James Cameron and Stan Winston in 1996, infusing the struggling business with a million investment.

Digital Domain considered an initial public offering in 2009 but ultimately withdrew the offer, because of the lack of interest. After leaving Propaganda Films, Bay and producer Scott Gardenhour, also formerly at Propaganda, formed The Institute for the Development of Enhanced Perceptual Awareness (now known as The Institute), to produce commercials and other projects.

Bay often traces his interest in action films back to an incident during his childhood.

As a boy, he attached some firecrackers to a toy train and filmed the ensuing fiery disaster with his mother's 8 millimeter camera.

The graphic novels employ Touchcode technology from T ink (previously used in the Power Glove), in which ink used in the printing process unlocks access to exclusive content that is housed on the Machinima Network, which is transferred to users' touch-screen-enabled mobile devices when the printed books are touched to those devices.

The company's premiere slate of graphic novels was unveiled at the October 2015 New York Comic-Con.

In 2015, the company announced an interactive publishing division to offer "augmented reality" content from printed graphic novels with digital video.The creators involved included Scott Rosenberg, Skip Woods, George Pelecanos, Mark Mallouk, Clay Mc Leod Chapman and Peter and Paul Williams.a production studio and technology company, as a strategic advisor and stakeholder.His opinion changed after seeing it in the theater and he was so impressed by the experience that he decided to become a film director.Bay's success in music videos gained the attention of producers Jerry Bruckheimer and Don Simpson, who selected him to direct his first feature-length film, Bad Boys.

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