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Warner Bros in $33m bid for Midway

Thu 21 May 2009 3:41pm GMT / 11:41am EDT / 8:41am PDT
Publishing

Sale would include Mortal Kombat franchise and two US studios, but not San Diego or Newcastle teams

Midway Games is seeking the sale of its business and assets to Warner Bros Entertainment for USD 33 million.

Under a "stalking horse" asset purchase agreement, Midway has filed a sale and bid motion in the Bankruptcy Court to conduct the sale.

Assets including Midway's Mortal Kombat franchise and development studios in Chicago and Seattle would be included in the deal, but the deal does not include Midway studios in San Diego or Newcastle, nor the TNA franchise.

Prior to any court approval of the deal, a court-supervised auction will be open to competitive bidding from other qualified buyers to achieve the highest possible price for the company.

Midway has faced financial difficulties for some time, with last year's sale of the company for USD 100,000 sending the business into bankruptcy and sparking lawsuits.

Last month, the publisher set a target amount of USD 30 million for the sale of the company.

6 Comments

Alex Okita
Technical Director

3 0 0.0
I wonder why they're leaving *out* some of the other parts of midway. Could it be that these parts are not so tasty?

Posted:5 years ago

#1

robert troughton
Managing Director

217 85 0.4
No Alex, it's not. We have a lot of very talented people in both studios. Take a look at the games we've produced here in Newcastle, for example - the studio has been here for 13 years and has produced several million-selling titles over the years. We've been lucky in many ways that we've gathered very technically skilled people over the years and we've retained the ones that we wanted to. Many of them could easily walk into technical director roles at other studios - maybe your fear of this is the reason you're resorting to trying to put these people down on public forums?

Posted:5 years ago

#2
Given Ubi's desire to start ramping up R&D for the next generation of consoles, plus invest more in the UK anyway, I'm surprised Ubi hasn't snapped you guys up, Robert.

I suspect the reason Warner may not want Newcastle is the relatively high cost of running a business here. That's all.

I'll be absolutely stunned if Newcastle doesn't survive in some guise or form - it's too good a proposition not to.

Posted:5 years ago

#3
That last paragraph I wrote could almost apply to the football this season - although we all know Newcastle are going down on Sunday! Come on Hull!

Posted:5 years ago

#4

Chris Kolmatycki
Game Designer

20 0 0.0
DRA-MA!

Posted:5 years ago

#5

Neil Soane
European Publisher and Developer Account Manager

7 0 0.0
Whatever the result I hope it works out for all concerned, it's never nice to go through this and I have some good friends working at Midway operations around the world. I hope that the process is swift and results in a positive outcome for all the Midway crew.

Posted:5 years ago

#6

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