Redstone Sells Midway Games For Pittance — And A Massive Tax Writeoff

imageScrambling to restructure National Amusement’s $1.6 billion debt this month, Sumner Redstone has sold off the company’s disastrous 87 percent stake in Midway Games for $100,000 in cash, assumption of debt — and a tax loss of $800 million, the WSJ reported. Mark Thomas, described by the Journal as an investor without prior connections to Midway, is paying $100,000, or $0.0012 a share, for National Amusement’s stake in Midway and assuming $70 million of senior secured and unsecured debt. Redstone will be able to use some of the loss as a write-off this year and possibly for refunds, but that alone won’t solve the problem. Redstone continues to insist that National Amusement’s remaining stakes in Viacom (NYSE: VIA) and CBS (NYSE: CBS) are not for sale, following the forced $233 million sale in late October, but is exploring the sale of other assets, including movie theaters.