Now that Warner Bros. has closed the Midway deal, the final clean up of the company continues. Our sources tell is that the Midway corporate offices were closed in Chicago last Friday, leaving another sixty Midway employees without jobs.

The Midway Chicago corporate headquarters is separate from the Midway Chicago development studios where Mortal Kombat continues development. The Midway Chicago development studios, as well as Mortal Kombat, have moved to Warner Bros. as part of the acquisition deal. At least 100 now former Midway Chicago studio employees will move over to Warner Bros. We can also report that our sources are confirming that Midway CEO Matt Booty was among those that was let go in the corporate HQ layoffs.

The layoffs have continued in recent weeks, with Midway Newcastle development studio closed, as well. Next will be the Midway San Diego studio that has been working on the next installment of the TNA Wrestling franchise, which was not part of the Warner deal and will be closed in about a month if a buyer is not found for studio. Reports also indicate that the TNA Wrestling franchise is still up for sale as well as the Necessary Force IP that was in development at Midway Newcastle. We have been able to confirm that a potential buyer has stepped forward and at least made an offer on the Necessary Force IP, but the Wheelman franchise that was also developed by Midway Newcastle has gone to Warner as part of the deal.

If there is any upside to the closing of Midway, it might be for the creditors, who might stand to get a bit more than the expected. Rumors are now persisting that the final price that Warner will have to pay for Midway will be closer to $49 million, rather than the $33 million that was originally estimated largely due to inventory on hand as well as accounts receivable that were a bit larger than expected. Midway is said to be writing off somewhere in the neighborhood of $69 to $76 million in debt, and in addition will be able to write down about $41 million in assets lost as part of the acquisition.

Unless some sort of unexpected turn of events takes place for the Midway San Diego studio as well as the ability to sell the TNA franchise and Necessary Force IP, it is likely that this will be the end of the road. We do expect that someone will pluck both the TNA franchise and Necessary Force IP, as these would appear to be the two prime assets that the company still has left. Our sources tell us that while talks continue surrounding the Midway San Diego studio, it is unlikely that a buyer will step forward, unless the buyer of the TNA franchise decides to purchase the Midway San Diego studio as part of the deal to get the game finished and released, but it is more likely that the buyer would be given the option to pitch key Midway San Diego studio talent in an effort to bring them onboard at a new studio to help get the developers up to speed to get the title out.