Redstone sells Midway Games stake at a huge loss
Billionaire media mogul Sumner Redstone and his holding companies have sold his family’s 80.3 million shares in Midway Games Inc. for less than a penny each, according to a Monday securities filing. The sale means a loss of hundreds of millions of dollars, which Redstone is expected to use to offset taxable gains his holding company, National Amusements Inc., is realizing from selling assets in its attempts to restructure $1.6 billion in debt.
According to the filing with the Securities and Exchange Commission, Redstone and companies National Amusements and Sumco Inc. on Friday sold their entire 87.2 percent stake for $0.0012 per share, about $100,000 in total, to Mark Thomas. Midway, best known for its “Mortal Kombat” video game, had 92.1 million shares outstanding as of Oct. 31. Thomas takes on $70 million in debt on the books of Chicago-based Midway, according to the filing. Wedbush Morgan analyst Michael Pachter estimated Redstone lost around $600 million on his investment in the video game publisher.
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