Report: Warner Bros. May Bid for Midway Games

Authored by Mark Hefflinger on April 27, 2009 - 7:16am.

New York - Time Warner's (NYSE: TWX) Warner Bros. is preparing a possible bid for bankrupt video game publisher Midway Games (NYSE: MWY), MCV reported, citing "reliable trade sources."

Chicago-based Midway filed for bankruptcy in February, listing $281 million in debt and $167.5 million in assets; former majority shareholder Sumner Redstone sold off his stake in December for just $100,000.

Warner is reportedly interested in Midway's "Mortal Kombat" and "Stranglehold" franchises, in addition to classic titles like "Joust" and "Gauntlet."

Midway has set a target sale price of $30 million.

"The deal isn't done yet. Midway is still open to offers from other potential buyers -- but Warner looks to be favorite to wrap it up. They look ready to put the money on the table," a source close to Midway told MCV.

http://snipurl.com/guqou (DMW previous coverage)

http://www.midway.com