Midway Completes Time Warner Sale


Video game maker Midway Games completed its sale to Time Warner Inc. on July 10 for $49 million, according to a Securities and Exchange Commission filing July 16.
Midway was once one of the prize holdings of Viacom and CBS chairman Sumner Redstone. Redstone sold his 87% stake in the game maker to private investor Mark Thomas for about $100,000 in November 2008, largely because he was under pressure to meet debt covenants for National Amusements Inc., which holds most of his Viacom and CBS stock. As a result of the Thomas deal, NAI was able to record a $700 million loss, which helped in its debt negotiations.
But that deal helped force Midway into Chapter 11 bankruptcy in February. The company agreed to a deal with Time Warner unit Warner Bros. Entertainment in May. The purchase price includes the assumption of certain liabilities, Midway said in the SEC filing.
Also in the filing, Midway laid off 75 employees at its Newcastle, U.K., facility and shut down the plant. It also notified all 60 of its employees at its Chicago facility of its intention to close that plant within the next 60 days. The closings represent 45% of Midway's global workforce.