News: Midway gets $33 million Warner Bros. bid

[News Bot]

Media giant offers to buy assets of bankrupt publisher, including Mortal Kombat and Wheelman; deal would not cover TNA license, San Diego and Newcastle studios.



When it took back the Lord of the Rings license earlier this year, it was clear Time Warner was beefing up its game arm, Warner Bros. Interactive Entertainment. Today, the company made an offer that, if approved by the bankruptcy courts, would make the division positively brawny, thanks to the Mortal Kombat license.


A Warner buyout could portend a Batman film/Mortal Kombat cross-over.


This morning, Midway Games corporate communications director Geoffrey Mogilner confirmed to GameSpot that the media giant has put a bid down for most of the bankrupt publisher's assets. "Warner came in with an initial bid for $33 million for consideration for inventory, accounts receivable, and most of the US assets, including the Mortal Kombat and Wheelman assets," said the executive.

The offer does not include Midway's Newcastle (UK) and San Diego studios, nor the TNA Impact! wrestling license, said Mogilner. Nor would it make the buyer assume any debt or liabilities of Midway, or entangle it in the legal actions surrounding its sale to a mystery buyer last year.

The "stalking horse" asset purchase agreement--so named by the vagaries of finance after the ungulates that helped the British hunt foxes--is the first step in a month-long court-supervised auction. "There's going to be a bidding process initiated as soon as there's a hearing to approve this motion for about 30 days," said Mogilner. "The bidding process ends with a hearing which will determine the winning bidder. It could be one group which buys pieces [of Midway], it could be one buyer that takes it all."

As for Warners' possible competitors, Moligner declined to name names. "There's a number of interested parties, but this is the first one that came forth with a written offer," he said.


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"Midway gets $33 million Warner Bros. bid" was posted by Tor Thorsen on Thu, 21 May 2009 09:06:44 -0700


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[News Bot]

Bankrupt publisher says court hearing next week should clear the way for Warner Bros. acquisition; competing bids accepted through June 24.



Although the eyes of the industry are already fixed on the 2009 Electronic Entertainment Expo in Los Angeles, the week's biggest industry-reshaping news could potentially be coming from a Delaware bankruptcy court. That's where Midway Games said today that it expects to receive court approval for the proposed sale of most of its assets to Warner Bros. Interactive Entertainment for a sum of $33 million.


All this could be yours, if the price is right.


Originally revealed last week, the WBIE offer would give the Lord of the Rings rights-holder another flagship property in the Mortal Kombat fighting franchise, as well as the Wheelman brand. However, that offer did not include Midway's Newcastle (UK) and San Diego studios or the TNA Impact wrestling license.

Even if the WBIE bid receives court approval, the acquisition would not be a forgone conclusion. Other companies can make bids for any portion of the company through June 24. That will be followed by an auction on June 29 to determine the bid or combination of bids that will bring in the most money, after which a July 1 hearing will give court approval to those transactions.

In its announcement confirming the June 2 hearing on the WBIE bid, Midway made a hard sell to potential bidders, touting the strength of not just Mortal Kombat but its fledgling properties such as the TNA Wrestling license, Wheelman, This Is Vegas, and Game Party. Looking further back, the publisher also emphasized its rich history of arcade hits, including Spy Hunter, Rampage, Joust, and Gauntlet.

Regardless of which offer (or combination of offers) is ultimately accepted, the buyer(s) would not assume any debt or liabilities of Midway, or become entangled in the legal actions surrounding the publisher's deeply discounted sale to a mystery buyer last year.


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"Midway sale approval expected next week" was posted by Brendan Sinclair on Thu, 28 May 2009 13:46:50 -0700


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