Warner Brother Wins Auction for Midway by Default

Much like professional athletes and their at times miss calculated worth, Midway chose to have an auction to incite a bidding war for the acquisition of many of their assets. In a report from The L.A. Times, Warner Brothers made an offer for more than the $33 million dollar winning bid (by default) due to the fact that their were no other bidders for the company for the auction that closed on Wednesday.

The offer includes most, though not all, of Midway's assets, including the company's Mortal Kombat, Spy Hunter, Joust and Wheelman franchises. It also includes two of Midway's four development studios -- one in Chicago and another in Seattle. It remains unclear what will happen to the company's studio in Newcastle, U.K., which makes the Wheelman games, and its studio in San Diego, which is developing a wrestling game based on a license with TNA Entertainment. Those assets could potentially be sold to another buyer.

The report states that the deal will not be finalized until a few other loose ends are tied up

Before the deal goes through, the Delaware court overseeing Midway's bankruptcy will have to resolve complaints by several creditors about the acquisition process. One of those is producer Larry Kasanoff's Threshold Entertainment, which produced two previous "Mortal Kombat" films and claims it has exclusive big-screen and TV rights to the series. Also objecting to the sales process is Tigon Studios, a production company controlled by Vin Diesel, which claims it is owed $200,000 for the star's work on the recently released game "Wheelman."

The deal should be finalized after 10 days of resolving these particular issues.