Midway Games

The story begins in 1958, when Henry Ross and Marcine Wolverton founded Midway Manufacturing, a maker of amusement equipment. A decade later, in 1969, the company was purchased by Bally Manufacturing and pivoted into the interactive entertainment industry. By licensing and distributing hits like *Space Invaders* and *Pac-Man* in the U.S., Midway established itself as a major force in the burgeoning arcade scene of the 1970s and 80s. The company's trajectory shifted again in 1988 when it was acquired by a competitor, WMS Industries. This period spawned some of gaming's most iconic franchises, including *Mortal Kombat* and *NBA Jam*. The immense success of *Mortal Kombat* in 1992, in particular, was a watershed moment, establishing Midway as a powerhouse developer and providing the capital to expand into the home console market. Following this success, Midway held an initial public offering in 1996 and was fully spun off from WMS in 1998. Despite its iconic status, the new millennium brought financial struggles. A series of costly acquisitions and a failure to produce new blockbuster hits led to mounting losses. In a pivotal moment in 2008, majority shareholder Sumner Redstone sold his 87% stake for just $100,000. This triggered a cascade of financial distress, forcing Midway to file for Chapter 11 bankruptcy in February 2009. The final act came in July 2009, when Warner Bros. Interactive Entertainment acquired the majority of Midway's assets, including the valuable *Mortal Kombat* franchise, effectively ending the company's long run.