How much would you pay for used game publishing and development company Midway? If you were Warner Brothers, you'd offer more than $33 million to buy just some of the firm.
Midway has been trying to unload parts of its company since at least March as a means of staving off financial ruin. Warner Bros. has submitted a written offer to Midway, and is trying to get its hands on assets including the rights to the Mortal Kombat franchise as well as Midway's studios in Chicago and Seattle. Not included in the offer: The rights to Wheelman, TNA, and Midway's studios in San Diego and Newcastle.
The $33 million offer still needs to be accepted by Midway, and then counter-offered and then finalized. There are adjustments, and board meetings with lawyers, and a court-supervised auction process to handle competing bids, if any. In short, there is a lot of red tape with a deal of this size, but the process is underway. .
Midway is expecting other offers, and says the company is speaking to other, unnamed parties, who might be interested in purchasing either the entire company or parts thereof.
Warner is obviously making a big entry into the game space, which makes perfect sense: It owns the rights to countless movie properties that could become video games, not to mention Warner's extensive music catalog that could be used for some future Warner produced music game -- WB has made it clear that it felt slightly cheated by song-licensing agreements with other companies. So this looks like a perfect case of corporate synergy. It's exciting! Well, exciting from the point-of-view of corporate overlords. Whether future Warner games -- including a new Mortal Kombat -- will be worthwhile to gamers remains to be seen.