Warner Bros. Makes A $33 Million Bid For Midway Games
This story was written by Tameka Kee.
Salvation may be in sight for embattled Midway Games, as Warner Bros. Entertainment has made a $33 million bid to buy most of the company's assets. The "stalking horse" purchase agreement would include Midway's studios in Chicago and Seattle, and of course, the Mortal Kombat franchise, but not its studios in San Diego, the U.K. or the TNA fighting series.
If the deal goes through, this would be Warner's fourth major gaming acquisition: it bought out RPG developer Snowblind Studios in February; TT Games in 2007 and Monolith Productions in 2006. (It also has a roughly 30 percent stake in Tomb Raider publisher Eidos). The studios are grouped under Warner's gaming arm, Warner Bros. Interactive Entertainment, which mostly distributes games tied to the company's content franchises like Looney Tunes, Batman and The Matrix; Midway's roster of TV- and movie-friendly games would fit right in. (It's also worth noting that Warner is one of Midway's current creditors).
If the court approves this initial bid, it would kick off a 30-day window for other companies to make an offer. Sources tell Kotaku that other interested parties include Ubisoft and a Chicago-based entrepreneur. Release.
By Tameka Kee