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MTV tycoon sells games giant
Jack Lefley02.12.08
American media tycoon Sumner Redstone has sold his controlling stake in a computer games giant at a loss of around £540 million on years of investment.
The move is being seen as an attempt to begin restructuring his operations as he struggles to cope with $1.6 billion of debt.
Redstone has agreed to offload his 87.2 per cent holding in Midway Games for only $100,000 in a bid to save an empire that includes CBS and MTV.
The games company has been bought by low-profile investor Mark Thomas, who has taken on $70 million in debt with the struggling venture. Midway Games was behind brands such as Mortal Kombat, but has recently failed to generate hit titles.
The borrowings had been secured against Redstone's stakes in MTV owner Viacom and the CBS Corporation. But both firms have since been hit by the global financial turmoil.
There are serious doubts about whether Redstone can raise enough money to satisfy the banks. He is also dealing with problems in his personal life, having recently filed for divorce from his second wife, Paula.
