Studio nabs assets in bankruptcy court
Warner Bros. has picked up most of Midway Games’ assets in bankruptcy court for the fire-sale price of $33 million, giving the studio rights to “Mortal Kombat,” “Spy Hunter,” “Joust” and several other game franchises.
A Delaware bankruptcy court judge OK’d the deal last week, saying that the objections to the transaction had been resolved.
Midway filed for bankruptcy protection earlier this year. Sumner Redstone had sold his 87% stake to Mark E. Thomas last year for only $100,000 along with the assumption of $70 million of Midway debt.
Midway’s creditors agreed last month to give Thomas a $5 million payment.
Warner declined to comment on its plans for Midway. And it opted not to buy two Midway development studios in San Diego and Newcastle, England.
Warner Bros. has been bolstering its vidgame and interactive biz. It bought Snowblind Studios in February, “Lego” games producer TT Games in 2007 and Monolith Prods. in 2006.
The studio also owns a 30% stake in Eidos (behind the “Tomb Raider” games franchise). It took over control of the “Lord of the Rings” franchise from Electronic Arts earlier this year.