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	<title>MediaMemo &#187; Midway Games</title>
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	<description>by Peter Kafka</description>
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		<title>Sumner Redstone's Black Friday Sale: Unloads Midway Games for Spare Change, Tax Benefit</title>
		<link>http://mediamemo.allthingsd.com/20081201/sumner-redstones-black-friday-sale-unloads-midway-games-for-spare-change-tax-benefit/</link>
		<comments>http://mediamemo.allthingsd.com/20081201/sumner-redstones-black-friday-sale-unloads-midway-games-for-spare-change-tax-benefit/#comments</comments>
		<pubDate>Mon, 01 Dec 2008 12:05:19 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Peter Kafka]]></category>
		<category><![CDATA[CBS]]></category>
		<category><![CDATA[Mark Thomas]]></category>
		<category><![CDATA[Midway Games]]></category>
		<category><![CDATA[Mortal Kombat]]></category>
		<category><![CDATA[National Amusements]]></category>
		<category><![CDATA[Sumner Redstone]]></category>
		<category><![CDATA[Viacom]]></category>
		<category><![CDATA[video games]]></category>

		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=1528</guid>
		<description><![CDATA[You think you got a good deal on an HDTV last week? Talk to Mark Thomas, who just picked up videogame company Midway games for 99 percent off on Friday. The seller: Sumner Redstone, who is desperately trying to sell off everything except his shares in CBS and Viacom in order to restructure a looming debt load.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2008/12/mortal-kombat.jpg"><img class="alignright size-medium wp-image-1529" title="mortal-kombat" src="http://mediamemo.allthingsd.com/files/2008/12/mortal-kombat-300x168.jpg" alt="" width="250" height="139" /></a>You think you got a good deal on an HDTV last week? Talk to Mark Thomas, who just picked up videogame company Midway games for 99 percent off on Friday. The seller: Sumner Redstone, who is desperately trying to sell off everything except his shares in CBS and Viacom in order to restructure a looming debt load.</p>
<p><a href="http://online.wsj.com/article/SB122810340075068473.html">The Wall Street Journal reports</a> that Redstone&#8217;s National Amusements holding company has sold its 87 percent stake in Midway (MWY) for $100,000, plus the assumption of $70 million in debt, to Thomas. On Friday, that stake was worth something like $30 million.</p>
<p>The real upside for Redstone, the paper says, will be a tax loss of some $800 million, though it&#8217;s unclear how he will be able to use that to help restructure his debt. Over the years, <a href="http://www.businessweek.com/technology/content/oct2008/tc20081023_565592.htm">Redstone invested an estimated $500 million</a> in the game maker. Redstone still has a few other assets that aren&#8217;t CBS (CBS) or Viacom (VIA), but those are by far his most valuable properties.</p>
<p>What does Thomas get out of this? It&#8217;s not entirely clear. Midway is best known for its &#8220;Mortal Kombat&#8221; franchise, which was once considered controversial because it allowed players to rip out the still-beating hearts of their opponents. But that&#8217;s old hat these days, and even new iterations like &#8220;Mortal Kombat vs. DC Universe&#8221; haven&#8217;t been able to sustain the company, which has lost $494 million in the last five years and has been under constant threat of losing its NYSE listing in recent months.</p>
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