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[twinturbo2]

Kotaku hinted at it a while back, and now it's official:

Midway today announced that they have received a more than $33 million offer from Warner Bros. to buy out most of their company.

The "stalking horse" asset purchase agreement with Warn Bros. Entertainment would include rights to Mortal Kombat and Midway's studios in Chicago and Seattle. The agreement would not include the studio in San Diego, Newcastle or the TNA franchise.

The news comes months after we heard that Warner Bros. was one of three groups looking to buy the company. At the time we were told that Warner Brothers, Ubisoft and a private Chicago investor were all looking to pick up Midway. Our sources told us Warner Bros. were at the top of the list with a vice president already touring Midway's HQ.

The purchase price would be $33 million, subject to adjustment, plus the agreed value of Midway's U.S. account receivables.

Prior to finalizing the deal, there will be a court-supervised auction process to handle any possible competing bids. That process, if approved by the court, would give other companies 30 days to make a bid, with the auction happening a few days after the bidding stops.

The publisher of Mortal Kombat filed for bankruptcy in February. The filing kicked off a soap opera of allegations of back room dealings, and corporate waste.

Source

It sucks that the TNA license and the San Diego studios aren't included- the TNA game was a promising start, and the San Diego studios was where Hydro Thunder was made- but their future is looking a little brighter.

Oh, searched, leper Wario if old, blah blah.

 

[~Devil Trigger~]

Mortal Kombat vs Looney Tunes confirmed

 

[twinturbo2]

Mortal Kombat vs Looney Tunes confirmed

:lol Imagine the fatalities on that one! :lol

If nothing else, this strengthens WB's video game operations, assuming that they get all of Midway's IP and not just Mortal Kombat.

 

[Busty]

The agreement would not include the studio in San Diego, Newcastle.....

Interesting. I wonder why these studios aren't included. Whether it's some debt management ploy or WB simply doesn't want them.

Isn't Midway Newcastle mainly made up of former Reflections employees that made the Rush games?

 

[twinturbo2]

Press release from Midway:

CHICAGO--(BUSINESS WIRE)--Midway Games Inc. today announced that it has entered into a “stalking horse” asset purchase agreement with Warner Bros. Entertainment Inc., a subsidiary of Time Warner, Inc. (NYSE:TWX - News), and filed a sale and bid procedures motion with the Bankruptcy Court to conduct the sale of the Company’s assets pursuant to Section 363 of the United States Bankruptcy Code. The bid procedures will provide for notice to be given to third parties of the pending sale to Warner Bros. Entertainment and offer the opportunity for interested parties to bid on the Company’s assets.

Under the agreement, Warner Bros. Entertainment would acquire substantially all of the Company’s U.S. assets including its Mortal Kombat franchise and its development studios in Chicago and Seattle for a purchase price of $33,000,000, subject to adjustment as of the closing for changes in inventory, plus the agreed value of the Company’s U.S. account receivables. The agreement does not include the Company’s development studio in San Diego and the TNA franchise games, nor does it include the Company’s development studio in Newcastle which had developed the Company’s recently released Wheelman game.

Prior to court approval of the Warner agreement, there will be a court-supervised auction process to facilitate competitive bidding by other qualified buyers. This process is intended to achieve the highest value possible for the Company’s stakeholders. The bidding procedures, if approved, would require interested parties to submit binding offers to acquire some or all of the Company’s assets within approximately 30 days of court approval of the bid procedures. Assuming qualified bids are submitted, an auction would be held a few days prior to the sale hearing. A court hearing approving the sale to the winning bidder or bidders would be held soon after the conclusion of the auction, followed by a final closing.

Once the bid procedures have been approved by the Bankruptcy Court, the Company will announce the initiation of the formal bidding process, and at such time interested parties will be asked to contact the Company’s financial advisor, Lazard, for more information on the bidding process.

Source

I'd assume that the "substantially all of the Company’s U.S. assets" part means all of their IP, aside from the aforementioned TNA license.

Interesting. I wonder why these studios aren't included. Whether it's some debt management ploy or WB simply doesn't want them.

Isn't Midway Newcastle mainly made up of former Reflections employees that made the Rush games?

I think they worked on LA Rush, so no, not really.

Last I checked, four of the main guys behind Rush 2049 are at Global VR, and worked on that EA Sports NASCAR Racing game released a year or so back.

 

[No_Style]

Mortal Kombat vs Animaniacs confirmed

Fixed for me!

Also, $33 million seems like a deal?

 

[fistfulofmetal]

Mortal Kombat vs Looney Tunes confirmed

bookmark this thread and come back in 3 years.

 

[Y2Kev]

33 mil is a LOT for Midway. Why not just wait till traditional bankruptcy sets in and then firesale?

 

[SturokBGD]

So Atari goes back home.

That's freakin' hilarious! :lol

 

[element]

33 mil is a LOT for Midway. Why not just wait till traditional bankruptcy sets in and then firesale?

because you have a risk of losing employee, or possibility being outbid for specific assets. With this they control the 'package' of assets.

 

[Busty]

I think they worked on LA Rush, so no, not really.

Last I checked, four of the main guys behind Rush 2049 are at Global VR, and worked on that EA Sports NASCAR Racing game released a year or so back.

Is Midway Chicago the studio that develops the Mortal Kombat games? If so I wonder what WB will rename it.

Team Kombat? Kombat Team? Warners Chicago? Chicago Warner?

Warn-a-brother Kombat Team?

The possibilities are endless.

 

[LiK]

Mortal Kombat VS Harry Potter bitches

 

[twinturbo2]

Is Midway Chicago the studio that develops the Mortal Kombat games? If so I wonder what WB will rename it.

Team Kombat? Kombat Team? Warners Chicago? Chicago Warner?

Warn-a-brother Kombat Team?

The possibilities are endless.

:lol

Midway Chicago is the Mortal Kombat studio, yes.

LiK, good one, but EA still has the Harry Potter license- aren't they releasing a game in time for the new movie?

 

[twinturbo2]

Some clarification on some things...

"It's in writing now, that there is interest," said Geoffrey Mogilner, director of corporate communications for Midway, who added that the company has been in talks with other potential owners as well.

The "stalking horse" asset purchase agreement with Warner Bros. Entertainment would include rights to Mortal Kombat and Midway's studios in Chicago and Seattle. The agreement would not include the studio in San Diego, Newcastle or the TNA wrestling franchise.

The Warner Bros. decision to not include the Newcastle or San Diego studios or the TNA rights was a decision the company made based on what they felt was best for their company, Mogilner said. Midway currently holds a multi-year, multi-game contract with TNA and are already working on the next title, Mogilner said.

The offer for Midway does include picking up the rights to Wheelman, which was developed in Newcastle.

... but why is that decision best for their company? The mind boggles...

 

[A Human Becoming]

I guess I'll need to come up with new game titles like when Square-Enix bought Eidos. :lol

• Final Raider
• Hitman Quest
• Kane & Lynch Ends With You
• Legacy of Mana
• Theif Profile
• Star Commando
• Chrono Timesplitters
• Backyard Wrestling: Grandia
• Space Chaos
• Bubble Effect

 

[LiK]

LiK, good one, but EA still has the Harry Potter license- aren't they releasing a game in time for the new movie?

actually, i don't mind a movie crossover. Shang Tsung VS Voldemort :lol

 

[infinityBCRT]

Hopefully the MK team staying on is part of the acquisition of the MK IP.

 

[twinturbo2]

Hopefully the MK team staying on is part of the acquisition of the MK IP.

That appears to be the case. I think Ed Boon was already talking about the next MK game, too.

 

[SovanJedi]

Awesome, now Shang Tsung can feature as a bit villain in new episodes of Scooby Doo.

"I woulda taken everybody's soul on Earth if it weren't for you meddlin' kids!"

And lots of scenes where Kintaro chases Shaggy and Scoob through lots of corridors and do that multiple doors gag.

 

[Dr. Kitty Muffins]

Now maybe TNA can get EA/AKI to make a wrestling game for them............. which is what they should have done in the first place.

 

[Littleberu]

Pretty evident they want Midway after MK vs DC.

 

[Strike]

:lol Imagine the fatalities on that one! :lol

 

[Xav]

Now maybe TNA can get EA/AKI to make a wrestling game for them............. which is what they should have done in the first place.

 

[sloppyjoe_gamer]

That appears to be the case. I think Ed Boon was already talking about the next MK game, too.

Well, it appears that Ed is going to E3, so maybe we'll get some info on the next MK game, or the long rumored sequel to MK: Shaolin Monks..

http://www.twitter.com/noobde

 

[Anticitizen One]

WB owns DC Comics so expect Midway to produce more super hero games as well as a sequel to MK vs. DC 2 should this deal go through.

 

[Boerseun]

Whatever happens, someone needs to get Midway's N64 catalogue on Virtual Console. They totally rocked back then!

 

[twinturbo2]

Whatever happens, someone needs to get Midway's N64 catalogue on Virtual Console. They totally rocked back then!

As I mentioned several times in the Virtual Console threads, I'd download the N64 version of Cruis'n World, if it shows up.

And with Midway's arcade heritage, maybe there's some stuff to mine for Virtual Console Arcade material...

 

[TheListener]

Strange buy, but it's a cheap way to get 1st party studios. Even if they are horribly dysfunctional. I wonder if Martin Tremblay thinks he can fix all that is wrong with Midway?

 

[akilshohen]

you all are so sleep LEGO KOMBAT

 

[SturokBGD]

I wonder if Martin Tremblay thinks he can fix all that is wrong with Midway?

What's wrong with Midway is that Midway is run by a bunch of baboons and/or criminals.

 

[twinturbo2]

Thread bumped with relevant information.

Here's the SEC filing. Judging from the looks of it, the deal will include all of Midway's past, present and future intellectual properties, not just Mortal Kombat. The only exceptions are the ones already mentioned (San Diego studio, Newcastle studio, TNA license).

http://sec.gov/Archives/edgar/data/1022080/000095012309009497/c51466exv2w1.htm

 

[element]

all video games of the Sellers (whether completed or not), including, without limitation, all previously released titles, all video games based on the Mortal Kombat universe and This is Vegas universe, all Game Party video games, all Touchmaster video games, all Area 51 video games, all Spy Hunter video games, all Wheelman video games, all of the Sellers’ arcade and coin-operated games including, but not limited to, Gauntlet, Rampage, Joust, and Rampart, and all “back catalog” and “classic intellectual property” library video games, and with respect to all of the foregoing, all Game Assets thereof (collectively, the “Seller Games”).

WB gets it all (almost)

 

[twinturbo2]

WB gets it all (almost)

I know, they could put stuff up on XBLA/PSN/VC Arcade and make some quick money off of the deal.

The only IP's not in the deal are Killer Instinct 1 and 2 (owned by Rare) and the Cruis'n trilogy (owned by Nintendo).

 

[element]

I know, they could put stuff up on XBLA/PSN/VC Arcade and make some quick money off of the deal.

The only IP's not in the deal are Killer Instinct 1 and 2 (owned by Rare) and the Cruis'n trilogy (owned by Nintendo).

totally could turn a quick buck with the back catalog via PSN/XBLA/VC/DS.

 

[Banana Kid]

you all are so sleep LEGO KOMBAT

Lego fatalities would be pretty great. Lego Johnny Cage tearing Lego dudes in half and Lego Sub-Zero tearing out Lego spines? Little Lego people exploding into all their pieces, with about eight Lego ribcages coming out? That'd be awesome.

 

[twinturbo2]

totally could turn a quick buck with the back catalog via PSN/XBLA/VC/DS.

They have my money if they do it.

Speaking of, what happened to Gauntlet DS? Maybe now's the time to revive that project...