Report: Redstone to sell Midway Games stake

Media mogul's National Amusements is selling its 87 percent stake in the company to reduce a heavy tax burden, according to The Wall Street Journal.

National Amusements, a media and entertainment company controlled by Sumner Redstone, is expected to announce on Monday that it sold its majority stake in Midway Games, according to a report in The Wall Street Journal.

Redstone reportedly sold the 87 percent stake to investor Mark Thomas, in exchange for $100,000 and the assumption of $70 million in secured and unsecured debt.

The transaction, while expected to result in a loss in excess of $800 million for Redstone, is expected to yield a substantial tax break for the media and entertainment investor, according to the Journal.

And for Redstone, that could mean one fewer headache as National Amusements, reportedly in a separate transaction, is busy renegotiating a restructuring of its $1.6 billion in debt with its banks and note holders.

Redstone is under great pressure, as the first portion of the debt, a $800 million bank loan, is due this month, according to a report in the New York Post.

National also holds controlling stakes in CBS, publisher of CNET News, and Viacom.

Featured Video

Why do so many of us still buy cars with off-road abilities?

Cities are full of cars like the Subaru XV that can drive off-road but will never see any challenging terrain. What drives us to buy cars with these abilities when we don't really need them most of the time?

by Drew Stearne