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Redstone Sells Midway For $100,000 To Ease Debt
by Leigh Alexander
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December 1, 2008
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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.]
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I wanted to buy midway and take-two shares, they are bizarrely low Oo