Midway Sold for $100,000

By Nick Breckon, Dec 01, 2008 5:24pm PST Media magnate Sumner Redstone has sold his majority stake in Mortal Kombat publisher Midway for a paltry $100,000, according to the Wall Street Journal.

Analyst Michael Pachter once estimated that Redstone spent between $500 and $700 million on Midway stock since 1983. But Midway's stock price has plummeted in recent years, falling from $23 a share in 2005 to 38 cents last Friday.

Redstone's controlling interest was sold to investor Mark Thomas for $0.0012 a share. Redstone will take a loss on the sale, but stands to gain from tax benefits.

Thomas will inherit the company's $70 million in debts, and will be charged with stomaching the company's growing losses and frequent layoffs.

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  • Midway's fall from grace has been a sad sight to see for me since I worked at Midway Los Angeles in 2005 on Mortal Kombat: Shaolin Monks. The development team and local management in LA are the most skiled professionals I've ever worked with. The problem is with the corporate management in Chicago, which green lit games like the horrible sequel to The Suffering, John Romero's Gauntlet, and TNA Wrestling (Great game, but flawed license). I saw great developers leave due to the decisions that we're made by corporate that not only alleviated developers, but also fans. Our game sold over a million copies yet gt never received a sequel using ideas like online co-op, more characters, online versus, etc. that we were excited to implement. I really want Midway to make it, but it will never happen until corporate can step out of the creative process and let the developers take over.