Sumner Redstone’s debt problems have claimed Midway Games’ chairman.
In a surprise move, the mogul’s daughter, Shari Redstone, resigned from the board of vidgame company Midway on Friday.
In a brief statement, Redstone said she was ankling Midway in order to focus on restructuring the debt of National Amusements, her father’s exhibition biz and the holding company for his controlling shares in Viacom and CBS Corp.
She was recently appointed to a special committee of National Amusement’s board that is overseeing discussions with banks and other debt holders.
Redstone, who has been a member of Midway’s board since her father obtained a controlling interest in the company in 2004, surprised many when she took the chair post last December. Vidgame publisher has consistently lost money and stock value for the past several years, and its debt obligations to National Amusements forced Redstone to sell $233 million worth of CBS and Viacom stock last month.
After a seven-month search that apparently netted no suitable or interested outside candidates, Midway recently appointed interim CEO Matt Booty to the job on a permanent basis. The former head of Midway’s internal studios took the job in March, when then-CEO David Zucker was fired.
Redstone is being replaced as chair of Midway by a close ally, Peter Brown, chairman-CEO of exhib chain AMC and a current Midway board member. Brown is also co-CEO and co-chairman, along with Redstone, of MovieTickets.com, in which National Amusements and AMC are both investors.