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View Full Version : Midway is sold for one hundred thousand dollars.


SheepFactory
12-01-2008, 03:45 PM
Yes 100k. But there is a catch:

Redstone sells Midway for $100,000
Sumner Redstone has sold his controlling stake in Midway Games for USD 100,000 (EUR 79,241 / GBP 66, 718), or USD 0.0012 per share, according to a report by the Wall Street Journal.

On Friday, the company was worth around USD 30 million, according to this MediaMemo report.

It is expected that Redstone's National Amusements will announce the deal later today, as the company offloads the games publisher in order to ease its debts.

Redstone's 87 per cent stake in the company has been bought by private investor Mark Thomas, who will assume USD 70 million of secured and unsecured debt.

National Amusements is said to have around 1.6 billion in debt outstanding, and according to the report, Redstone has invested over USD 500 million in Midway Games.

Midway has struggled through a tough year, with staff lay-offs and unannounced projects cancelled.

Last month it revealed losses had doubled to USD 76 million for the three months to September, from USD 33.5 million to USD 75.9 million.

http://www.gamesindustry.biz/articles/redstone-sells-midway-for-100-000


I dont know what kind of investor thought acquiring 70 million dollars in debt is a good idea but maybe they know something we dont.

edit: Edge online explains more.

Though that selling price seems absurd at face value, in selling Midway Redstone will make an $800 million tax saving for National Amusements. The firm is reported to have an outstanding debt of $1.6 billion.

It makes sense now.

unchikun
12-01-2008, 04:16 PM
Redstone has invested over USD 500 million in Midway Games.

Ahhh, thats how they stayed afloat all these years

richcz3
12-02-2008, 06:07 PM
An interesting if not controversial read LINK Variety (http://weblogs.variety.com/the_cut_scene/2008/11/midway-what-wen.html)

To find out, I spoke to several ex-employees. And while there were lots of little things, one issue popped up again and again: Midway's decision to license Unreal Engine and use it for ALL its games.

"The mistake we made was, instead of just taking the base Unreal 3 engine that 'Gears of War' was made on and building games off of that, we let our tech and product development guys try to really modify the engine to add all these diff things," one ex-employee told me. "It was a ton of new technology which they just weren’t capable of doing. It put all the games way behind schedule."
.... apparently they all (Midway Studios) had to adapt UE3 for each project, which meant they couldn't share resources in a timely manner, so none of the promised benefits materialized.

ouch.:surprised

lebada
12-02-2008, 06:26 PM
so basically they tried to over expand past what was needed without thinking prior to the decision of the repercussions involved going down the line. Ouch...is an understatement hehe.

switchblade327
12-02-2008, 08:52 PM
1.6 billion? Wow, that's a lot of copies of Mortal Combat vs. DC...


An interesting if not controversial read LINK Variety (http://weblogs.variety.com/the_cut_scene/2008/11/midway-what-wen.html)

To find out, I spoke to several ex-employees. And while there were lots of little things, one issue popped up again and again: Midway's decision to license Unreal Engine and use it for ALL its games.

"The mistake we made was, instead of just taking the base Unreal 3 engine that 'Gears of War' was made on and building games off of that, we let our tech and product development guys try to really modify the engine to add all these diff things," one ex-employee told me. "It was a ton of new technology which they just weren’t capable of doing. It put all the games way behind schedule."
.... apparently they all (Midway Studios) had to adapt UE3 for each project, which meant they couldn't share resources in a timely manner, so none of the promised benefits materialized.

ouch.:surprised

This I don't buy. I mean, I can see why it's an issue but I've never heard of any Unreal (or any third party engine) licensee who uses bone stock version of the engine. Not even Gears of War 2 used the 'base' Gears of War engine; it expanded and improved upon the old tech; that's how game engines work. Other studios need to modify their engine to suit the needs of their specific game. Even mods often mess with the code.

Whether it was smart to license Unreal for every game Midway makes is a different story. That's a decision that should be made by a team or at least a studio; not from corporate HQ.

But even then, I'd say the biggest failure on Midway's part was not making games that got people excited about them.

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