Matt Martin
13:15 (BST)
01/12/2008
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Redstone sells Midway for $100,000
Sumner Redstone has sold his controlling stake in Midway Games for USD 100,000 (EUR 79,241 / GBP 66, 718), or USD 0.0012 per share, according to a report by the Wall Street Journal.
On Friday, the company was worth around USD 30 million, according to this MediaMemo report.
It is expected that Redstone's National Amusements will announce the deal later today, as the company offloads the games publisher in order to ease its debts.
Redstone's 87 per cent stake in the company has been bought by private investor Mark Thomas, who will assume USD 70 million of secured and unsecured debt.
National Amusements is said to have around 1.6 billion in debt outstanding, and according to the report, Redstone has invested over USD 500 million in Midway Games.
Midway has struggled through a tough year, with staff lay-offs and unannounced projects cancelled.
Last month it revealed losses had doubled to USD 76 million for the three months to September, from USD 33.5 million to USD 75.9 million.
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