Majority Stake in Midway Sold for $100,000
Media mogul Summer Redstone sells his claim of Midway Games for the Wall Street equivalent of tomato soup and a grilled cheese sandwich.
As GamePolitics points out, just about any gamer with a full-time job and a loan could have scooped up the always troubled publisher, Midway. Unless, of course, said gamer wasn't prepared to take on $70 million worth of debt. Fortunately for the board of directors, such a brave soul exists as investor Mark Thomas has purchased 87% of Midway Games Inc from Sumner Redstone of National Amusements Inc for a paltry estimate of $100,000 at $0.0012 per share.
To pay $100,000 for $70 million in debt may not make a lot of sense on paper, but the deal could be mutually beneficial in the long-run. Sumner, while facing a significant loss on the sale, will receive a massive tax benefit to the tune of roughly $800 million in the next year, which will go towards the $1.6 billion debt of his company, National Amusements. As for the investor, Mark Thomas, only time will tell. He will either go on to snatch victory from the jaws of defeat, or deal to Midway its final fatality.
Should Midway be put up for sale once more, we here at The Escapist are prepared to open up a PayPal account to which you can donate $5 towards the purchase of the publisher. From there, Mortal Kombat sequels until the day the Sun explodes or we go bankrupt on a group trip to Tijuana.
Tijuana! Whoo! But wow, Midway is worth that little? That sucks.
$0.0012 per share... that is hilarious! I would buy the company but $70 million in debt would turn me off. It's to bad they went under, but oh well. Maybe this new guy will turn it around!
Damn, they had a really cool development system going where people would share tech and programmers so all their games worked out. Too bad it didn't see the light of day.
I find it funny I reported this in the news section of another site less than an hour before this
I'm surprised no-one's made a "FINISH HIM" joke yet.