Media conglomerate Time Warner has made a $33 million offer, via its Warner Bros. Entertainment subsidiary, to purchase assets from bankrupt publisher Midway.

The proposal sees Warner attempting to purchase "substantially all of [Midway's] U.S. assets," including the Mortal Kombat franchise plus development studios in Seattle and Chicago. However, Midway was clear that the Warner offer does not include the TNA franchise, the Midway San Diego studio and Wheelman developer Midway Newcastle.

The two companies are now in a "stalking horse" agreement, with a "court-supervised auction process...intended to achieve the highest value possible for [Midway's] stakeholders" set to occur before the court can approve or deny the Warner bid.

In its continued struggle against bankruptcy, Midway has proposed an incentive plan that would see some remaining employees receive bonuses for meeting certain goals, though the company is unable to reimburse ex-employees for unused paid time off.

Three specific milestones are outlined in the plan. The first, to find a co-publisher for Wheelman, was accomplished a few days before the plan was filed on February 23. That accomplishment was worth a $497,500 bonus, reports netDockets.

The other two milestones, as-yet-unaccomplished, are to sell the Mortal Kombat property to another company or submit a new reorganization plan. Either is worth $1,292,500. Closing either deal with then bring about another $1,965,000.

The Mortal Kombat fighting series is easily the most well-known... Read more

Hidden away within a press release regarding shipment figures for Mortal Kombat vs. DC Universe was the first official word that Midway is planning another series entry.

"We're already hard at work on our next version of Mortal Kombat, and look forward to being able to reveal more details in the future," said franchise co-creator Ed Boon.

While the publisher did not disclose how many copies of Mortal Kombat vs. DC Universe have actually been sold, it did note that "approximately 1.8 million units" of the PlayStation 3 and Xbox 360 fighter have been shipped since its November 16 release.

Midway is currently $240 million in debt and facing possible bankruptcy in February.