Midway Games Inc

Sumner Redstone and his holding companies have sold their shares in Midway Games Inc. for less than a penny each, capping the media mogul's aggressive investment in the troubled video game maker that ended up costing him hundreds of millions of dollars. The $100,000 in proceeds from the sale of Redstone's 87.2% stake to investor Mark Thomas will not help pay down his family company's debt of $1.6 billion.

Midway Games Inc., the video game company controlled by Sumner Redstone, said it had a larger-than-expected third-quarter loss as product delays led to a sales shortfall. The loss excluding certain costs was about 27 cents a share, Chicago-based Midway said in a statement of preliminary results. It previously forecast a 17-cent loss. Sales were about $39 million, less than the $50 million that had been predicted.

A Massachusetts businessman who paid a mere $100,000 for an 87% stake in Midway Games Inc. scored nearly $5 million from its sale, chalking up a 4,900% return on his eight-month investment. Mark E. Thomas, an investor in Concord, Mass., bought his shares in the troubled Chicago game publisher in November from financially strapped media magnate Sumner Redstone, who got rid of his holdings in time to claim a $700-million 2008 tax write-off.

Viacom Inc.'s MTV division said Monday that it had teamed with video game maker Midway Games Inc. to market three upcoming games, sell in-game advertising and develop the soundtracks for the games. The first title shipping under this deal, an arcade racing game called "L.A. Rush," is expected to debut this holiday season. It will feature the crew from the MTV show "Pimp My Ride," the companies said.

Sumner Redstone, chairman of Viacom Inc. and the largest shareholder in video game publisher Midway Games Inc., may seek to boost his stake in or acquire the company, he said in a regulatory filing. In a statement filed with the Securities and Exchange Commission, Redstone, who holds more than 48% of Midway individually and through his company, said there was no timetable to complete a review of his options, which could also include seeking a seat on Midway's board.

Midway Games Inc., the video game maker controlled by Viacom Inc. Chairman Sumner Redstone, said its third-quarter loss narrowed to $13.9 million as the company sold more copies of the latest "Mortal Kombat" game. The net loss of 20 cents a share compared with a loss of $23.3 million, or 52 cents a share, a year earlier. Sales rose 46% to $17 million, the Chicago-based company said.

Warner Bros. has emerged as the only bidder for Midway Games Inc., all but assuring that it will take control of the bankrupt video game publisher previously owned by Viacom Inc. Chairman Sumner Redstone and become a major force in the video game industry. Midway had hoped that the film studio's $33-million offer, made in late May, would spark a bidding war that would boost its price.

Shari Redstone, the daughter of media mogul Sumner Redstone, resigned Friday as chairwoman of beleaguered Midway Games Inc., saying she needed to focus more attention on negotiations with bankers to restructure the family business' massive $1.6-billion debt. The move underscores the pressure the powerful media family is under to make an $800-million payment by Dec. 19. Shari Redstone has been leading discussions with lenders on behalf of the family holding company, National Amusements Inc.

Video game maker Midway Games is fighting for its survival after warning this week that it could default on $240 million in debt. Chicago-based Midway disclosed in a regulatory filing Thursday that it had hired Lazard Ltd. to evaluate "strategic and financial alternatives." Midway spokesman Geoffrey Mogilner declined to elaborate on those options but said the company had sought Lazard's advisory services in advance of a looming debt payment in April. Midway hired Lazard on Nov.

Creditors of Midway Games Inc. are suing the Chicago company's board members and former majority owner Sumner Redstone, alleging that his sale of Midway was a "fraudulent transfer" that benefited the media mogul while pushing Midway into bankruptcy. The suit, filed Monday in federal Bankruptcy Court in Delaware, alleges that Redstone sold his 87% stake to investor Mark E. Thomas for a mere $100,000 so Redstone could register $700 million in tax losses and collect a "massive tax refund."