Midway today announced that they have received a more than $US33 million offer from Warner Bros. to buy out most of their company.
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 franchise.
The purchase price would be $US33 million, subject to adjustment, plus the agreed value of Midway's U.S. account receivables.
Prior to finalising 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.