Midway games files for bankruptcy protection
Chicago (IL) - The creator of such popular games as Space Invaders, Pac-Man, Spy Hunter, Tron, NBA Jam and the infamous Mortal Kombat, as well as over one hundred additional titles, has filed for chapter 11 bankruptcy protection after the late 2008 sale of Sumner Redstone's controlling interest.
CEO Matt Booty said, "This was a difficult but necessary decision. Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment."
Sumner Redstone is the chairman of Viacom, and in a move to reduce his own debt, informed U.S. regulators in December that he had severed his ties to Midway, reportedly selling his entire interest the previous month. Redstone sold 80.3 million shares for $0.12 per share ($9.6 million dollars), which was an 87.2% stake in the company.
Midway is now looking to restructures its business, to realign with what it feels are solid, core fundamentals and above-industry-average game sales. Founded in 1958, Midway has had an enormous run of game successes. Their recent Game Party franchise has sold nearly three million units.