b2b news - Warner Bros. Entertainment Inc has made a bid of $33 million for the majority of bankrupt Midway Games’ assets.
On Thursday, the companies said they have a "stalking horse" agreement, essentially the opening bid in a court-supervised auction for the company's assets.
The deal does not include the entire company. Warner Bros., a subsidiary of Time Warner Inc., would take over Midway's development studios in Chicago and Seattle along with the "Mortal Kombat" line, but not studios in San Diego or Newcastle, Britain.
The game developer filed for bankruptcy in February after Sumner Redstone sold his majority stake in the company, leaving it unable to meet debt obligations.
