informa
1 min read
article

Redstone Sells Midway For $100,000 To Ease Debt

Media mogul Sumner Redstone is reportedly selling his 87 percent stake in Midway Games (This is Vegas) to a private investor for $100,000, or a mere $0.0012 cents a share, as Redstone attempts to cope with his own mounting debts alongside Midway's
Media mogul Sumner Redstone is reportedly selling his 87 percent stake in Midway Games (This is Vegas) to a private investor. Midway faces ongoing profitability issues and was most recently threatened with stock market delisting, while Redstone has been burdened by debt and the ramifications of the ongoing credit crunch. According to the Wall Street Journal, investor Mark Thomas, who has no prior relationship with Midway, will pay about $100,000 for the entirety of Redstone's stake -- $0.0012 cents a share -- and will assume the publisher's $70 million in debts. The Wall Street Journal reports that Redstone will take a hefty loss on the sale, but will gain a considerable tax benefit as his holding company, National Amusements, negotiates with banks to restructure some $1.6 billion in its own debt. It's yet another setback for Mortal Kombat creator Midway after Redstone's daughter Shari resigned her position as the head of the company's Board following numerous layoffs at the publisher's studios, doubling losses, and "critical issues" in the most recent financial quarter. [UPDATE: An SEC filing has confirmed the sale of a majority of Midway shares to MT Acquisition Holdings LLC, apparently Mark Thomas' holding company.]

Latest Jobs

Studio Pixanoh LLC

Los Angeles, California
05.20.22
Combat Designer

Treyarch

Playa Vista, California or Vancouver, BC
05.20.22
AI Engineer

Question

Remote
05.20.22
Lead Level Designer (South Park)

Remedy Entertainment

Helsinki Metropolitan Area, Finland
05.23.22
Rigging Artist
More Jobs   

CONNECT WITH US

Register for a
Subscribe to
Follow us

Game Developer Account

Game Developer Newsletter

@gamedevdotcom

Register for a

Game Developer Account

Gain full access to resources (events, white paper, webinars, reports, etc)
Single sign-on to all Informa products

Register
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more