Midway Games has been sold for an amount of...

*R-iZZy* · 12-11-2008, 05:10 AM

... $100,000.

A controlling stake of Midway Games has been sold to a private investor for $100,000. The sale, finalized today, will transfer an 87 percent stake in the fledging game maker from Sumner Redstone, a global businessman, to Mark Thomas, a private investor.

The $100,000 that Thomas paid works out to about a tenth of a penny per share, a far cry from the $0.30 per share closing price last Friday on the New York Stock Exchange. Thomas will assume $70 million of the company’s senior secured and unsecured debt.

Redstone sold his controlling stake in Midway Games to receive a large tax benefit for his company, National Amusements.

The sale marks another low for the Chicago, Illinois based company, who had already been struggling with massive layoffs and multiple titles that flopped at retail. In August 2008, Midway laid off 90 workers from its Austin, Texas studio, while also cancelling a previously unannounced title called “Criminal”.

Midway Games recently released a new title in their “Mortal Kombat” series, “Mortal Kombat vs. DC Universe”, is one of the few games that have a chance to keep the struggling company afloat. MK vs. DC was released in mid-November, and its sales will not be known until industry tracker NPD Group releases November software sales data next month.

Midway’s European marketing director Leonie Manshanden, however, has high hopes for the title.

“We have very high sales expectations for MK vs DC. I can’t tell you the exact number, but historically if you look at the franchise, every new MK on a new platform has done best. It’s always enjoyed that upward trend. With this installment we really think we’re going to set another record.”

http://www.endsights.com/?p=394

12-11-2008, 05:10 AM	#1
R-iZZy The Long Con Join Date: Jul 2002 Location: G'ville, FL (Gator Country), USA Posts: 3,007	Midway Games has been sold for an amount of... ... $100,000. A controlling stake of Midway Games has been sold to a private investor for $100,000. The sale, finalized today, will transfer an 87 percent stake in the fledging game maker from Sumner Redstone, a global businessman, to Mark Thomas, a private investor. The $100,000 that Thomas paid works out to about a tenth of a penny per share, a far cry from the $0.30 per share closing price last Friday on the New York Stock Exchange. Thomas will assume $70 million of the company’s senior secured and unsecured debt. Redstone sold his controlling stake in Midway Games to receive a large tax benefit for his company, National Amusements. The sale marks another low for the Chicago, Illinois based company, who had already been struggling with massive layoffs and multiple titles that flopped at retail. In August 2008, Midway laid off 90 workers from its Austin, Texas studio, while also cancelling a previously unannounced title called “Criminal”. Midway Games recently released a new title in their “Mortal Kombat” series, “Mortal Kombat vs. DC Universe”, is one of the few games that have a chance to keep the struggling company afloat. MK vs. DC was released in mid-November, and its sales will not be known until industry tracker NPD Group releases November software sales data next month. Midway’s European marketing director Leonie Manshanden, however, has high hopes for the title. “We have very high sales expectations for MK vs DC. I can’t tell you the exact number, but historically if you look at the franchise, every new MK on a new platform has done best. It’s always enjoyed that upward trend. With this installment we really think we’re going to set another record.” http://www.endsights.com/?p=394 __________________