As we have reported previously, the situation at Midway continues to become more and more critical as the days go by. The company is simply running out of money, and while our sources claim that they have made lot of pitches to various parties who might be interested in acquiring the company, it would seem that after having a look at the situation and prospects for the future, many parties have simply walked away.

Our sources tell us that currently Time Warner seems to be emerging as the front runner who likely seems to have the best chance to acquire Midway. While our sources continue to tell us that the company will likely get three final bids, only the Time Warner bid is likely to be attractive to the bankruptcy court and could gain approval. The other bids will be considered as well, but with the massive amount of debt that the company has, it is going to be difficult for anyone other than a big company to take control and turn Midway around.

As for Time Warner taking control of Midway this could give the company a good brand to launch future software offering from, as well as to extend Midway owned franchises into new areas. With the right kind of restructuring and capitalization Midway could rise again, but at least for the moment things continue to look pretty bleak; recent news regarding the potential departure of many of the Mortal Kombat team due to unpaid bonuses and general dissatisfaction with the situation of the company have not instilled much confidence for the future of the franchise.