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RUMOR: Microsoft interested in Midway?


Romier S
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Heres the article on Gamersfeed.com:

 

http://microsoft.gamerfeed.com/gf/news/5667/

 

Microsoft To Buy Midway?

source: Gamerfeed.com

 

A press release this morning indicates that Bill Gates is interested in Midway.

 

It's no secret that Midway Games has been struggling. The company has reported 12 consecutive quarterly losses and has suffered a 75% drop in it's stock. Fortunately for Midway Viacom chairman, Sumner Redstone, likes Midway and has recently spent $16.5 million on 4.8 million shares. Interestingly enough, it looks like the world's most famous CEO, Bill Gates, is thinking of buying shares as well.

 

Ah what would life be without another rumor of MS buying another developer but hey they make for great conversation pieces. ;) Of course this is ONLY rumor and should not be taken as definite folks. If it does however prove to have a semblance of truth I'm not exactly sure of how this would really be a help to MS. Mortal Kombat is still a name but doesn't have near the selling power it once did and for the most part Midway releases in the past few years have been less than stellar (to say the least).

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I honestly don't see this happening. Microsoft want developers, not publishers. Buying a publisher brings the baggage of distribution, marketing, publicity etc, none of which Microsoft needs to add to its structure. The only gain is in IP.

 

I can see them buying a developer like Bioware, but not a publisher like Midway.

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Midway would be a complete waste of money right now so this rumor seems implausible to me. Of course, they did basically throw cash away on Rare so there's always a chance. However, buying Rare provided a big boost in hype and showed that Microsoft meant business at a time when many people were doubting the Xbox, even if the games haven't been there so far.

 

If I were Microsoft, I would be absolutely hounding UBIsoft to get some sort of exclusivity or merger agreement. UBI is simply the hottest thing going right now when it comes to consistent quality. The Tom Clancy games are a huge draw on Xbox live and it would be a great boon to have them exclusive. Plus, UBI has a lot of ability in the Xbox's weak areas. Rayman 2 is still tighter and better playing than any 3d platformer released before or after it, and sequels to BG&E and PoP would provide some great exclusives in the adventure genre. If only the man behind Rayman could be 2 places at once to both redeem the Rayman series and make another BG&E. Of course, I'm sure UBIsoft would be immensely tougher to get than many other companies, but it would be better to make one great acquisition than several poor ones that don't add any value. Plus, UBI is a big player in PC games as well so they'd fit into Microsoft's strategy outside of the Xbox.

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Shamelessly stolen from Frictionless Insight:

 

Midway Games announced that it has signed an agreement with Wells Fargo Foothill, Inc. providing Midway with a $15 million term loan as well as a $15 million revolving credit facility. These facilities are covered under a five-year credit agreement which is secured by "substantially all of the assets of the company." Midway plans on using the funds as working capital. This agreement should provide Midway some additional time to work on turning its fortunes.

 

I doubt Midway would be seeking a longterm credit deal if Microsoft was about to buy them out. Of course, little suprises me when it comes to industry buyouts.

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