Viacom CEO Sumner Redstone admitted that the company is considering expanding into the videogame business and could still acquire Midway Games. The statement was contained in a filing the investor made with the Securities and Exchange Commission.
According to Redstone, “The management of Viacom Inc. has from time to time considered the possibility of participating more extensively in the electronic games business, possibly by acquiring a company in that industry. In this regard, Midway could be considered as a potential licensee of Viacom intellectual property, or as an acquisition candidate."
Redstone holds 73.6% of Midway’s stock, although this is a personal investment and not linked to his position at Viacom. Nevertheless, rumours of a sale to Viacom have been rampant for many months.
According to analyst Michael Pachter at Wedbush Morgan Securities, “We believe that Midway is unlikely to be acquired by Viacom, but we think that the company should be considered a candidate [for Viacom licensing deals] given Mr. Redstone's large holdings.” THQ currently holds the majority of licenses to Viacom’s MTV and Nickelodeon properties.