Talk about your Black Friday deals. Hoping to resolve debt issues, stodgy old-timer Sumner Redstone has sold his controlling interest in Midway Games for approximately $100,000.
The Wall Street Journal reports that Redstone's 87% stake in Midway has been purchased by investor Mark Thomas for around $0.0012 a share, a substantial loss considering that Midway stock closed at $0.38 per share on Friday afternoon. Why the insane discount? With the purchase, Mr. Thomas will also assume $70 million of senior secured and unsecured debt from Redstone's holding company National Amusements, so selling $30 million in stock for $100,000 in order to rid yourself of $70 million in debt makes a certain kind of sense.
It remains to be seen what Mark's plans are for the company, which is facing NYSE delisting. Can their top secret game save them, or is this one step closer to an early grave?
Redstone Sells Control of Midway to Ease Debt [Wall Street Journal]