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Warner's $33M Midway Acquisition Approved By Judge
by Chris Remo
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July 2, 2009
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Warner Bros. can proceed with its proposed buyout of beleaguered publisher Midway and its assets, following approval granted by a bankruptcy judge, reports the Chicago Tribune.
The $33 million deal will close within 10 days. First proposed in May, it was the only offer made to acquire Midway.
While most of Midway's assets are being picked up, Warner left a few studios and properties on the table. Midway San Diego and Midway Newcastle have 60 days to find new owners before they are shut down. Although their staffers have already been given their 60-day notice, they remain on the payroll until that point.
Also up for grabs are several sports franchises, including Blitz and NBA Ballers, according to a Joystiq report.
Mark Thomas, the Midway investor who purchased former majority owner Sumner Redstone's 87 percent stake in the company last December, will receive a $5 million payment out of the deal.
That figure is substantially lower than Thomas' original $30 million secured claim; he accepted a lower sum in a settlement made with Midway's creditors earlier this month.
Thomas will now see a mere 4,900 percent return on his original $100,000 investment.
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That Mark Thomas is a smart man! No one would've passed on a opportunity to turn $100,000 to $5 million.
Many of you that read this think I must be a bitter ex-employee with an ax to grind? I would say no (I am bitter not getting the money owed to me) I landed a great job that actually pays you the hours you work plus overtime. So in the end I have a better life for my family and myself. I just hope all the other employees that got screwed by Midway find the same thing that I did.
I am sincerely sorry to hear you and others got shafted in that manner. MK Vs. DC was a fun game and I would have loved to have seen a sequel with an expanded roster. It's a shame Midway has fallen from grace because they used to make some of the best games on the planet but in the years to come most people won't remember classics like Mortal Kombat II, Paperboy and HydroThunder but instead will associate their name with failure and bankruptcy.
Best wishes on your future endeavors.