Blog Post

Midway Sold To Warner Bros. For $33 Million — But Two Studios Left Out

And now it’s done. Midway Games has been sold to Warner Bros. for $33 million — ending about six months worth of financial turmoil and headline-grabbing legal disputes surrounding the bankrupt Mortal Kombat publisher. Warner gets most of Midway’s assets in the deal, per the Chicago Tribune; disputes between the publisher’s unsecured creditors, senior execs and majority stakeholder Mark Thomas, as well as a lawsuit over the rights to Mortal Kombat have been resolved.

Entertainment magnate Sumner Redstone kicked off the saga in late November by selling his 87 percent stake in Midway (including $70 million worth of debt) to Thomas, who gets a $5 million payment as part of the Warner Bros. sale. Left out of the deal are a San Diego studio (which develops the mixed martial arts title TNA) and one in Newcastle, U.K. — both of which will be shut down within 10 days if another buyer isn’t found (per Joystiq).