Midway may be in for fatality: stocks fall 40%
Midway Games, the studio behind the Mortal Kombat franchise, has been shoulder deep in financial troubles lately. Although its recently found an investor who took 87% of the company’s shares, its still spiraling down financial ruin as its shares fall 40% since Monday.
Midway Games, the studio behind the Mortal Kombat franchise, has been shoulder deep in financial troubles lately, and is currently facing delisting from the New York Stock Exchange.
It’s gotten so bad that a private investor was able to buy 87% of shares for only US$ 100,000. The purchase was hoped to pull Midway out of its spiral of doom, but that’s not the case.
Midway’s share price fell to a new low of 23 cents, down almost 40% from Monday’s peak. The company is still heavily in debt, although Mark Thomas, the guy who dished out the hundred grand from a controlling stake in the company, is reported to dish out US$ 70 million to cover some of the debt. Looks like he didn’t get the company for cheap after all.
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