The great gaming depression of 2008 gets even more great (and depressing). Mortal Kombat Vs. DC Universe hasn’t spelled much success for developer Midway, but that must sound like music, now that share-holder Sumner Redstone has sold his 87% stake in the company to investor Mark Thomas. All for a paltry sum of $0.012 per share (roughly $100,000 altogether), according the latest report from Reuters.
Redstone made this move to ease the current debt on his firm, National Amusements, which totals an outstanding $1.6 billion – about half which must be repaid by year’s end. Compared to $230 million already paid from selling shares in CBS Corp. and Viacom Inc., $100,000 seems like peanuts for Redstone. However, despite a heavy loss, he is expected to secure a large tax benefit as he negotiates more sales, according to the report.
Overall, a tax loss of more than $800 million by 2008-end is in store for National Amusements, according to a person familiar with the situation. The company was unavailable for comment at the time. Thomas is expected to assume $70 million of senior secured and unsecured debt; he has no prior relationship with Midway.
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