Said to run out of cash by then
Last modified on Friday, 10 April 2009 07:40
The latest news in the Midway saga is that at the current cash burn rate the company will likely deplete all funds by July; and this assumes that the company will continue to lose money at its current rate. This could mean the end for Midway, but at least some hope could be on the horizon.
Sources tell us that believe it or not… three potential buyers have emerged and are taking a serious look at Midway’s current assets and franchises in an effort to decide if they are worth acquiring. While one of the companies said to be looking at Midway is still a mystery, the other two are, in fact none other than Warner Bros. and Ubisoft. All we know about the mystery buyer is that it is said to be a Chicago private investor or investment group. Our sources tell us that Ubisoft has been talking with Midway for weeks and that Warner Bros. visited the company last week.
While of course no one, including Midway, is going to comment on the possibility of rescue by purchase for fear that it could spook the deal, we believe that out of the candidates looking at the company for purchase at the moment, Warner Bros. might have the most to gain by the purchase of Midway, as it would give the company a number of new franchise titles to work with as well as a good inventory of older arcade titles that could be re-released on the current consoles to generate revenue.
Our sources tell us that although Midway did a publishing and revenue sharing agreement with Ubisoft on Wheelman, the two companies are far apart on what a deal with Ubisoft to acquire Midway might look like. However, whispers do suggest that the two companies are continuing to talk.