Warner Bros. has emerged as the only bidder for Midway Games Inc., all but assuring that it will take control of the bankrupt video game publisher previously owned by Viacom Inc. chairman, Sumner Redstone, and become a major force in the video game industry.

Although Midway has declined in significance in the last few years because of big losses and poor-selling games, it is still a well-known brand with a rich library of titles that Warner will be able to exploit as games or, potentially, movies and TV shows. Integrating Midway will significantly expand the scope of Warner Bros. Interactive Entertainment, the studio’s small but growing video game division.

Assuming the deal goes through, the studio will take control of most of Midway’s assets, including Mortal Kombat and well-known but dormant game series such as Joust and Spy Hunter. It will also get two production houses in Chicago and Seattle.

Before the deal is complete, however, the Delaware court overseeing Midway’s bankruptcy must address complaints by several creditors about the sales process. One of those is producer Larry Kasanoff’s Threshold Entertainment, which worked on two “Mortal Kombat” films and claims it has the exclusive film and TV rights to the series. Also objecting is Tigon Studios, a production company controlled by Vin Diesel, which said in a filing that it is owed $200,000 for the star’s work on the Wheelman game. A court hearing to address those and other issues is scheduled for Wednesday.

Source: LA Times