Midway Sold for $100K
No, that’s not a typo. Media tycoon Sumner Redstone, the owner of the National Amusements theatre chain, has sold his stake in Midway Games to investory Mark Thomas for roughly $100,000.
That’s less than a penny per share.
While I openly admit that I would’ve bought Midway Games had I known that I could’ve bought them for $100K, this only signals more hard times for the Mortal Kombat publisher. In 2008 the company saw its chairman, Sumner’s daughter Shari Redstone, resign, saw a net loss in Q2 2008 that more than doubled it’s total loss in Fiscal 2007 and sold several assets to help pay for a $40 million loan to get them through their fall production cycle. Most recently, the NYSE (New York Stock Exchange) has threatened to remove the company from its listings if there isn’t a turn around.
If you’re wondering why Redstone was so eager to get rid of the controlling interest in the company, consider this: He is also the majority owner of National Amusements. If you’ve been to the movies in the past few years, you’ve probably sat in a National Amusements owned theatre.
Then again, I doubt many of you have been going to the movies over the past few years, since the theatre chain is currently in some $1.6 billion of it’s own debt.
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