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Midway gets $33 million Warner Bros. bid

Media giant offers to buy assets of bankrupt publisher, including Mortal Kombat and Wheelman; deal would not cover TNA license, San Diego and Newcastle studios.

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When it took back the Lord of the Rings license earlier this year, it was clear Time Warner was beefing up its game arm, Warner Bros. Interactive Entertainment. Today, the company made an offer that, if approved by the bankruptcy courts, would make the division positively brawny, thanks to the Mortal Kombat license.

A Warner buyout could portend a Batman film/Mortal Kombat cross-over.
A Warner buyout could portend a Batman film/Mortal Kombat cross-over.

This morning, Midway Games corporate communications director Geoffrey Mogilner confirmed to GameSpot that the media giant has put a bid down for most of the bankrupt publisher's assets. "Warner came in with an initial bid for $33 million for consideration for inventory, accounts receivable, and most of the US assets, including the Mortal Kombat and Wheelman assets," said the executive.

The offer does not include Midway's Newcastle (UK) and San Diego studios, nor the TNA Impact wrestling license, said Mogilner. Nor would it make the buyer assume any debt or liabilities of Midway, or entangle it in the legal actions surrounding its sale to a mystery buyer last year.

The "stalking horse" asset purchase agreement--so named by the vagaries of finance after the ungulates that helped the British hunt foxes--is the first step in a month-long court-supervised auction. "There's going to be a bidding process initiated as soon as there's a hearing to approve this motion for about 30 days," said Mogilner. "The bidding process ends with a hearing which will determine the winning bidder. It could be one group which buys pieces [of Midway], it could be one buyer that takes it all."

As for Warners' possible competitors, Moligner declined to name names. "There's a number of interested parties, but this is the first one that came forth with a written offer," he said.

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Hvac0120

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start the bidding low, then nogotiate to a slightly higher price. I'd be surprised to see it sell with this first offer. _

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ocdog45

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they will say no. they think tis worth much more hten that. It proably is, but you guys at midway can't get it back to its glory.

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Tzunoy

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Yeahhh i agree Mortal Kombat game must survive. I image mortal kombat by Rare ohhh boy do you remember Killer Instinct? Oh mann how much i would love to see KILLER INSTINCT next-gen.

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firehawk998

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I liked MK VS DC it was surprisingly good I would like to see support for it but there is one game that I wish Midway focused on THE SUFFERING more. I loved the 2 games and could only imagine what they would do with next gen graphics.

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mysteriojoe

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MK vs. DC was a good game, I'd like to see the deal happen. Maybe we would get MK vs. DC 2 with more characters. Johnny Cage, Cyrax Robin, Riddler, Super Girl etc.

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Pete5506

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I hope something happens I want to see some more MK

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Da_Skull_King

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i wish midway wasnt bankrupt, i dont want to see mortal kombat in anyone elses hands.

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Fetus5

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Haha Nice HatesRbn pwnage on the explaintion why I hope WB doesn't get the buy. Money's welcome but leave the game makeing to the game artists plz no more ET

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BtmnHatesRbn

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Let's see, for all of ignorant of gaming history: Atari was founded in 1972 and pirated two games at the time: Space War (a.k.a Computer Space) and the tennis program from the Magnavox Odyssey. The rest is history, and Atari did settle any disputes over their content with Magnavox (Space War was only on mainframes at the time, so nobody bothered copyrighting it). Atari becomes, thanks to Sears, the premiere "amusement" company for both home and the arcades. By 1976, Atari is running out of money (they owned Chuck E. Cheese at the time and the economy was, strangely, EXACTLY like it is today), so Atari is sold to Warner Communications (a.k.a Time Warner or Warner Bros.) and Chuck E. Cheese is left with Atari's founders, but still gets new Atari arcade machines first, before anybody else. Atari, in 1982, while the 2600 is still successful, but five years old, blows it with the 5200. Luckily, 2600 sales are strong and Atari's 400/800 line of PCs are very powerful for the time, so profit all around. By 1984, video games "crash" in the United States of America, and Atari posts major losses (the crash has to do with unlicensed games of poor quality being released and has nothing to do with either crappy Pac-Man or E.T. carts, though it is true those were dumped in a landfill when the remaining carts didn't sell). Atari also loses the deal with Nintendo's Entertainment System distribution for all territories not America. WB looks to sell. They sell the home division that makes the PCs and consoles to Tramiel. He cancels the 7800, 5200, and focuses on the 2600 and new PCs coming out. He'd rip-off the Macintosh with the Atari ST PC ("PC" isn't a format by the way...if you're using Linux, Windows, etc. on an Intel-based CPU design, you're using the "IBM" format) and releasing the 7800 in 1986, Lynx in 1989, and Jaguar in 1993. All are failures, and 1993 saw the year Atari killed the their computer division. Atari in the arcades was owned still by WB, but by 1996, with nothing except San Francisco Rush out from Atari and all other games (i.e. Primal Rage, Pit-Fighter, etc.) failing to games like Killer Instinct and Mortal Kombat II, WB sells their version of Atari to Midway. That same year, the other Atari is sold to JTS, who makes hard drives. JTS immediately sells Atari to Hasbro. Midway folds their Atari into Midway games, Hasbro sells their Atari to Infogrames, who also bought GT Interactive, who was formerly Apogee (you know, the Duke Nukem Forever people), and Infogrames changes their name to Atari. Midway and Infogrames cross-license many things based on old, pre-WB splitting-up-the-company-in-1984 contracts. Atari releases the Flashback consoles, hires all of Sony of America, and is currently doing nothing. Midway gets a huge investment from CBS Viacom's owner for a few years. Doesn't pull a profit, and he dumps all of his stocks, while at the same time, their games aren't selling. And to come back full circle, WB wants to buy Midway? They've also invested heavily into EA and Infogrames (or Atari, or whatever they want to be called)...so, WB, by investing in Midway, is looking to get back their version of Atari from the 1970s...

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Fetus5

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[This message was deleted at the request of the original poster]

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Red122

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I hope it does sell maybe it would breathe new life into the MK series.

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imprezawrx500

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"Crap, I can only see Wheelman and MK movies resulting from this" ubisoft bought the wheelman so that wont happen

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Gao_Wuji

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For all it's faults I will be sad to see an old school publisher like Midway go. And if they lose Mortal Kombat, it just isn't Midway.

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XFoogyX

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I just want to see some Mortal Kombat Vs DC downloadable content!

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godzillavskong

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Midway without the Mortal Kombat series is like buying Kobe Bryant and leaving the Lakers in despair.I do like Warner Bros. though, and most of the games that I have that they've been associated with were pretty good. Especially Fear 2.

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chappy_man

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Wow..... i did not see that coming.

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teamfear

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Midway has been around for a long time. I would hate to see them disappear.

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Lurkero

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Crap, I can only see Wheelman and MK movies resulting from this

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Diernes

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Warner brothers? I think if we are too ever see a decent Mortal kombat game again, either capcom or Namco are going to have to pick up the license. You know, a proven publisher which has the development teams capable of making decent fighters, and there are very few....

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bloodomen9

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lol 119 hours?!? i think kojima is making fun of has :][

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JoeSour

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It'll happen, cuz warner bros. has the money to buy the franchises... but if I so ever see, an E rated mortal kombat, It'll will be the end of the world. Hopefully WB does not water it down, and in turn make it something that Midway couldn't have made. Until then i'll have my doubts

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bertm1975

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33 millions? Didn't The Dark Knight make that in its first day? Very sad..

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Chet_Won

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You know that means a new mortal kombat movie and tie in game

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SearchBomber

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"It's going to be very weird to see a Mortal Kombat game by a different developer." Yeah, it'll actually be playable. =O

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S_Pac_316

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Well, they better not water down MK...

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Darth_Nater307

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If WB buys the MK license, will I be the only one expecting another MK vs. DCU game?

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ahpuck

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33 million for Midway? oh how the mighty have fallen!

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dark_being

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Midway is done for. It's been ages since they released a good game, and it was no surprise when they when bankrupt. Midway should stay down and except the fate it brought upon itself.

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TheNinjaGamer

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Midway made awesome Mortal Kombat games, it would be weird seeing it made by a different developer

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Hobbitslayer18

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Warner Bros. Is rolling good this year, guess they really want to make some cash through video games.

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bertm1975

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Since Warner Bros. owns New Line Cinema now, and they produce (IMO) the awesome Mortal Kombat movie, if they in turn buy the MK property from Midway, maybe we'll get a new, GOOD Mortal Kombat movie, and a GOOD MK game.

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bassmaniac20005

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By all means, they should do it. $33 million isn't all that much, but if we ever want to see another Mortal Kombat game ever again, they need to accept that bid.

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gatsbythepig

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Good to hear, I could make some money here.

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jadefury27

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This is welcome news. as long as ea doesn't buy them out. c'mon rockstar put a bid in!

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Amnesiac23

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Hmm...going to be interesting to see where this goes. Odd that the bid didn't include TNA.

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MortalDecay

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It's going to be very weird to see a Mortal Kombat game by a different developer.

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sarahandkev

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