News Archive - May, 2009
Midway Announces Sale of Assets Including Mortal Kombat

Midway has posted a press release today announcing a timeframe for a section 363 sale of their assets including Mortal Kombat.

Midway recently announced a "stalking horse" asset purchase agreement, which is expected to receive court approval, subject to higher or better bids, in a hearing on June 2, 2009. Following this hearing, there will be a period during which Midway, through its financial advisor, Lazard, will accept binding offers up to June 24th, 2009, to acquire some or all of the Company's assets. An auction will be held on June 29th to determine the bid or combination of bids that achieves the highest value, followed by a court hearing to approve the sale to the winning bidder or bidders on July 1st, and then a final closing. All bids must comply with the bid procedures order to be issued at the hearing on June 2, 2009.

To view the press release in full, click here.

As more information becomes available we will bring it to you. Our thanks to forum member for the lead on this story.

Midway Receives Offer from Warner Bros.

The struggling Mortal Kombat developer Midway Games has received an offer to buy "substantially all" of the US property owned by the company. This does indeed include Midway's lead, as well a number of other titles:

Midway Games said Thursday it has a bid from Warner Bros. Entertainment Inc. to buy "substantially all" of the video-game maker's U.S. assets for $33 million, including the company's Mortal Kombat franchise and its development studios in Chicago and Seattle.

Midway filed for Chapter 11 bankruptcy protection in February and had told the court it was evaluating offers from parties interested in acquiring its assets. Warner Bros. is a "stalking horse" bidder, meaning that Midway chose the company from a pool of bidders and the $33 million offer sets the floor for future bids. There will now be a court-supervised auction where other qualified buyers can make their own offers.

"The process is intended to achieve the highest value possible for the Company's stakeholders," Midway said Thursday.

Midway said it has filed a sale and bid procedures motion with the bankruptcy court to initiate these proceedings.

We'll keep you posted, as the legal processes are still ongoing and have a long way to go before a true resolution is reached. To view this article at the Chicago Tribune's website, click here.

Kotaku also picked up the story.

Thanks to and for the lead on this story.

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