Midway Sold for Chump Change

[Emabulator]

GamePolitics has word (http://www.gamepolitics.com/2008/12/01/midway-sold-pennies-dollar) that Sumner Redstone has sold his controlling interest in troubled publisher Midway for about $100,000. Financially-troubled game publisher Midway has been sold for a mere pittance of its former value.

Reuters (http://www.reuters.com/article/innovationNews/idUSTRE4B02DI20081201) reports that media tycoon Sumner Redstone (left) unloaded his controlling interest in the Mortal Kombat publisher for $0.0012 a share, or about $100,000.

Hell, at that price any gamer with a full-time job could have gotten a loan and owned their own game company.

The buyer is investor Mark Thomas. In addition acquiring Midway's assets, however, Thomas also bought himself $70 million worth of Midway debts.Ouch!

[modeps]

Whoops. I wonder how this will be reflected with their secret game, or with This is Vegas.

[pwnophobia]

Whoops. I wonder how this will be reflected with their secret game, or with This is Vegas.

Drats! 5 minutes late.

[Dirty Harry]

I am all for trying to relive the memories of our youth but i think id rather see Midway fade away permamently then struggle like this constantly and put out incredibly substandard games.

[Venkman]

I am all for trying to relive the memories of our youth but i think id rather see Midway fade away permamently then struggle like this constantly and put out incredibly substandard games.

I thought they were fine as publisher for UT3. The rest of their games suck, though. ;)

[Froggy]

Maybe he'll sell it for 50k next week. 70 million in debt, though. That sounds like a sweet investment. THQ in trouble and now this! My childhood is going bankrupt.

[Infinity]

Epic says they are happy with Midway as their publisher, so if it weren't for the debt I'd guess they'd buy Midway and use their publishing assets.

[Trazzlo the Magnificant]

Midway is the publisher? Ok, that makes more sense now. For years and years, I thought Midway was when they released their titles during the development cycle.

[riposte101]

Hopefully Midway can rise from the Ashes. I'm hoping because I'd hate to see yet another company go out of business and all those jobs lost.

[NightRain]

You have to remember Midway has $70,000,000 in debt, so the new owner gets that debt too. Its like like he gave up $100,000 and that was all it took.

[TeeCakes]

Whoops. I wonder how this will be reflected with their secret game, or with This is Vegas.

Something tells me that 'rumor' was an attempt to drive up the asking price, which apparently was a failed tactic considering the peanuts that were paid for owning Scorpion's ass.

[Demo_Boy]

paying 100k for 70 million in debt.

That is pretty hardcore. Interesting to see where this will go.

[Sasori the Medic]

You have to remember Midway has $70,000,000 in debt, so the new owner gets that debt too. Its like like he gave up $100,000 and that was all it took.

I don't believe that's accurate. The creditors get their money first and then the shareholders (the new buyer). The new buyer's controlling interest just means that he has a majority of the company's shares and can manipulate who sits on the board and other important matters. He's not personally liable for the debt though. It doesn't work like that. Midway's assets would be sold off and the most he would lose is his 100,000 dollar investment and if the value of the assets did not exceed the debt.

[AversionFX]

Hopefully Midway can rise from the Ashes. I'm hoping because I'd hate to see yet another company go out of business and all those jobs lost.

If a company can't provide a decent product, they shouldn't remain in business. A shame for anyone to lose their job, but let's not sugar coat this.

[Flatpicker]

Midway needs to retrench and reevaluate their position in the market.

Or to put it bluntly, they need to make better product and stop cutting development in favor of cheap name based sales. Ie John Woo, MK vs DC etc etc.

[Gedd]

Eh.. it's just a name anymore. The "real" Midway Mfg. is long gone. But hey, i'm an old geezer. When someone says Midway I think Bally/Midway; arcade games and pinball. Aladdins Castle at my mall was loaded with those old beasts.

Ah, and yes, Bally grew up and are now they're making the ultimate in coin gobblers! Las Vegas slot machines! Om nom nom indeed.