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Finance

Midway stock falls 40% since sale

Thu 04 Dec 2008 4:14pm GMT / 11:14am EST / 8:14am PST
Finance

Market capitalisation down to $21 million after Redstone offloads publisher

Since Sumner Redstone sold Midway for USD 100,000 on Monday the company's share price has fallen to a new low of just 23 cents - that's down almost 40 per cent since Monday's peak.

It values the Mortal Kombat publisher at just over USD 21 million, although the company has high levels of debt - incoming investor Mark Thomas, who is thought to have taken Redstone's 87 per cent stake in the company will reportedly take on around USD 70 million of that debt, almost comparable to the losses it made in just the three months to the end of September this year.

Midway's stock currently faces delisting from the New York Stock Exchange for failing to attain a level of one dollar for 30 consecutive days, and it currently shows no signs of reviving.

Matt Booty, who was recently appointed full time to the post of president, has already taken big steps this year to try and address the company's worsening outlook, by streamlining studios and refocusing projects.

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