Looks like the new home of Mortal Kombat, Joust, Spy Hunter and other well-known Midway properties will be Warner Bros. after all. The media conglomerate looks to have won bidding rights to the publisher and developer by default.
As part of a buy out time line that would accept offers until June 24th, Midway's goods and people were previously planned to go up for auction on June 29th to the entity with the deepest pockets. No need for that now.
Warner's bid would net the media giant development studios in Chicago (Mortal Kombat, Stranglehold) and Seattle (The Suffering, This Is Vegas) and rights to new and classic IP. It would also almost certainly mean another Mortal Kombat and DC crossover.
Midway still has two orphaned studios, one in San Diego, one in Newcastle (Wheelman), with the latter currently seeking a buyer for the team and its original Necessary Force property.
More details at the LA Times.