May 14, 2009 |
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."
December 2, 2008 |
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.
November 11, 2008 |
Midway Games Inc., the video-game publisher controlled by Sumner Redstone, reported a wider third-quarter loss because of higher costs to develop titles, and predicted it would stay unprofitable in the current period. The net loss expanded to $75.9 million, or 83 cents a share, from $33.5 million, or 37 cents, a year earlier, the company said. Third-quarter revenue rose 40% to $51.4 million. Chicago-based Midway, maker of the Mortal Kombat games, hasn't had a profit in more than three years.
November 8, 2008 |
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.
September 19, 2008 |
Sumner Redstone's National Amusements Inc. agreed to provide as much as $40 million in financing to Midway Games Inc., the money-losing video game maker the media billionaire also controls. National Amusements will supply the funds by buying receivables, Chicago-based Midway said. The company had $14.6 million in cash as of June 30, down from $57 million a year earlier. Midway is cutting jobs and reducing development spending to lower costs.
October 3, 2007 |
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.