Company In Effect Sold for Pennies on the Dollar
For just $100,000, you could have owned the house that Mortal Kombat built.
That’s the selling price, plus debt, that Viacom/CBS head Sumner Redstone put on his 87 percent stake in Midway games. That’s a little more than a tenth of a penny a share.
The sale is the final chapter in Mr. Redstone’s ownership of the company. It is believed that he poured a total of $500 million into the company, but Midway has been floundering for some time now. Redstone assumed his majority ownership in 2005.
The buyer is private investor Mark Thomas. Not much is known about him.
There is a catch to the firesale. Mr. Thomas will assume $70 million in debt within the company, as well as another $79 million in additional convertible debt that has to be repaid by next Spring, according to Variety. Midway is also in the hole with other debt even beyond that.
Midway stock closed yesterday at 33 cents a share, down sharply.
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