Midway recently put up all parts of the company for auction, as required by bankruptcy courts. According to the Los Angeles Times, the $33 million offer from Warner Bros. for most of the company's assets was the only one tendered.
Sources tell the newspaper that several game publishers and a Chicago-based investment group took long hard looks at Midway, though ultimately, none made any bids for the publisher.
"No other bids came in, so there's not going to be an auction," confirmed Midway's spokesman Geoff Mogilner.
Certain creditors will have to have their complaints resolved before an acquisition can be finalized. First is Larry Kasanoff's Threshold Entertainment, which contends that it still has the rights to make Mortal Kombat films and TV series. Also, Vin Diesel's Tigon Studios claims the actor is owed $200,000 for his work on Wheelman.
A court hearing to address the above issues (among others) will take place July 1. After all legal obstacles are out of the way and the Warner Bros. offering is officially accepted, Mogilner indicates that the acquisition will close 10 days later.
Warner Bros. will acquire franchises like Mortal Kombat, Spy Hunter, Joust and Wheelman in the deal, along with the company's primary studio in Chicago and another in Seattle. Midway Newcastle (which made Wheelman) and Midway San Diego (which is working on a TNA wrestling game) face the risk of closure without an interested investor.
