It looks like game publisher Midway will soon by no more. A story on the Chicago Tribune web site reports that Warner Bros. has been cleared by a Delaware bankruptcy judge to purchase two of Midway's development studios (Chicago and Seattle) along with most of the company's IPs, including the Mortal Kombat franchise. As previously announced Warner Bros. will pay $33 million for those assets.
And what about the other two Midway studios not bought by Warner Bros. (the ones in the UK and San Diego)? Our sister site Joystiq reports via a Midway spokesperson that they are required by law to shut down the studios within 60 days. There's no word yet if any other companies might be interested in acquiring those studios but the UK studio is trying to promote their own open world action game, Necessary Force, as a last ditch attempt to get a publisher to buy their studio.
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