Warner to pick up Midway from bankruptcy

GamaSutra is reporting that Warner has bid $33 million for Midway, $3 million above the bonus target revealed in court documents last month.

The deal includes Mortal Kombat and the Chicago and Seattle studios but leaves out the San Diego and Newcastle (formerly Pitbull) studios.

The deal is subject to the courts, and now that Warner has made a bid, other companies may come forward, since the option of picking up the Mortal Kombat franchise at an absolute bargain price is much less likely.