-
Midway Closes Chicago Corporate Office, 60 Laid Off
[07.17.09]
 As Warner Bros' acquisition of Midway closes, the Mortal Kombat publisher is closing its corporate office in Chicago, letting go all 60 of the staffers employed there.
According to a report in the Chicago Tribune, CEO Matt Booty, who's held the role since the departure of embattled chief exec David Zucker in March 2008, is among the layoffs, as are other senior execs. The Chicago layoffs account for about 20 percent of Midway's workforce.
Midway's corporate office in Chicago is separate from the Mortal Kombat development studio it has there. Warner Bros. will reportedly retain that studio and 100 of its staff in the acquisition, and will also keep the company's Seattle studio.
Midway recently confirmed, however, that its Newcastle studio will be shuttered, with a potential sale of its Necessary Force IP in the works, though Warner Bros. will keep Vin Diesel-affiliated property Wheelman.
The fate of Midway's San Diego studio, developer of the TNA wrestling franchise, appears to be up in the air. Warner Bros. did not acquire the franchise, and Midway is reportedly still seeking a buyer for the studio.
New SEC filings reveal that the final value of the company's acquisition is higher than the $33 million initially reported -- the final gross purchase price was $49 million largely thanks to inventory and accounts receivable.
Midway will also write off between $69 and $76 million of its massive debt, and will also be able to write down some $41 million in assets lost in the acquisition.
By Leigh Alexander
July 17, 2009 05:30:00 AM PST
| |
|
