Warner Approaches Midway With $33 Million Bid
Warner Bros. is seeking to acquire assets from a bankrupt Midway Games, and WB's $33 million bid would buy the Mortal Kombat franchise as well as Midway's studios in Chicago and Seattle. What's more, this "stalking horse" bid exceeds Warner Bros' previously bandied-about figure of $30 million.
Midway will be maximizing its value in as many ways as possible, and parceling its most attractive properties together and selling them off will earn Midway a substantial dowry - especially if Midway follows through on its suggestion of a court-supervised bidding process and the increase in value that could entail. Although part of the stalking horse arrangement will see Warner earn a $1 million break-up fee if Midway goes for another offer.
Left out of the bid are the TNA franchise and Midway's San Diego and Newcastle studios. The Newcastle studio's Wheelman IP, however, while not specifically part of the bid, would be included if the $33 million offer is accepted.
Warner Makes $33 Million Move On Midway Games [Gamasutra]
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Posted to Hot Stuff, Miscellany on 21 May 2009
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