Sumner Redstone’s daughter Shari resigned from Midway’s board, indicating that she and her dad might sell the poorly performing video game company.
WSJ: Sumner Redstone’s daughter, Shari Redstone, has resigned as chairwoman of Midway Games Inc., in a move that could be a precursor to the media mogul’s family selling its stake in the video game company.
The Redstones are considering asset sales as part of an urgent restructuring of their $1.6 billion debt pile. The family’s holding company, National Amusements Inc., has been in negotiations with lenders after the value of its assets tumbled in the recent stock-market rout.
Ms. Redstone, 54 years old, said in a statement Friday that she was resigning from the Midway board to focus on her role leading those negotiations. Board member Peter Brown will succeed Ms. Redstone at Midway.
People familiar with the situation have said Mr. Redstone may opt to sell the family’s stakes in Midway and slot machine company WMS Industries Inc. as part of a restructuring. Selling the Midway stake would mark the end of a tumultuous investment. Through National Amusements, Mr. Redstone poured around $800 million in Midway — a move that was a source of tension with his daughter. Midway’s value has tumbled 97% in the past three years as it failed to produce new hit games, and the family’s stake is now valued at just $46 million.
Business Insider Emails & Alerts
Site highlights each day to your inbox.