Midway Games Places Hope with Time Warner
May 21, 2009 by Mark Ellis
Filed under Business
Midway Games Inc., best known for the Mortal Kombat, Wheelman, and Gauntlet series of video games, filed for bankruptcy on February 12 and has been seeking a deal ever since. Time Warner, through its Warner Bros. Entertainment Inc. unit, has become the largest bidder for the defunct video game company, offering $33 million for Midway’s assets.
Midway will hold an auction on June 29 and it wants Warner Bros. to act as the lead bidder. The video game company hopes that this move will attract a larger bid than what Warner Bros. is prepared to offer. When Midway began its search for a purchaser, it set a $30 million benchmark value for its assets.
Warner Bros. has a vested interest in Midway Games, having negotiated deals with the company in order to produce several video game titles. In fact, Midway owes Warner Bros almost $8 million, a debt that Warner Bros. will waive if it wins the auction.
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