SAN FRANCISCO (AFP) — Sumner Redstone's media empire informed US regulators on Monday that it has sold its controlling stake in videogame stalwart Midway Games in a debt-slashing move.
Redstone, chairman of US entertainment conglomerate Viacom, will reportedly log a loss of more than 800 million dollars (US) that is expected to turn into a hefty tax write-off for his family-owned National Amusements firm.
Private investor Mark Thomas bought 80.3 million shares of Midway stock for 12 cents per share, getting Redstone's entire 87.2 percent stake in the US-based videogame maker, according to a Securities Exchange Commission filing.
Thomas also agreed to take on 70 million dollars worth of National's debt, the SEC filing indicates.
National owns controlling interests in Viacom and CBS Corporation along with a network of movie theaters but is scrambling to re-structure more that 1.5 billion dollars in debt to navigate turbulent financial straits.
Midway is one of the videogame industry's oldest firms, founded in 1958 and becoming a defining aspect of the arcade era with pinball and "Space Invaders" machines before expanding to videogames for consoles.
Midway owns the "Mortal Combat" franchise and last month released a "Mortal Combat vs. DC Universe" videogame getting stellar reviews for play that pits characters such as Sub Zero against Superman and other comic book heroes.
In November, Midway reported third quarter revenues of 51.4 million dollars as compared with 36.7 million dollars in revenue the same three months a year earlier. Midway reported a loss of 83 cents per share in the quarter.
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