Warner Bros. wants Midway

Warner Bros., which already had a solid presence in the video game world, is looking to expand its turf. The company today offered $33 million to buy several key components of Midway Games.

Midway, which filed for Chapter 11 bankruptcy protection in February, has been on the block for some time. What’s interesting is what Warner wants – and what it plans to leave on the curb.

The “Mortal Kombat” franchise, natch, is on the ‘gimme’ list, as are development studios in Chicago and Seattle. Warner’s also interested in Midway’s legacy games, including arcade standards “Gauntlet,” “Joust” and “Defender”.

But Warner has no interest in Midway’s license to create games based on the TNA wrestling franchise or its other studios in San Diego and Newcastle.

The two companies have a recent history together, having worked on last year’s “Mortal Kombat VS. DC Universe,” so Warner’s familiar with the Midway team and the strengths and weaknesses of the company, giving it an advantage should it acquire the assets.

But Warner’s bid is really the start of a longer process. Once it’s made formal before the bankruptcy judge, other companies will be able to submit counterbids for roughly 30 days. (Look for Ubisoft to give this serious consideration.)

From there, it’s an old-fashioned auction. The submitted offers will act as opening bids, but companies will be able to increase them. And a Midway spokesperson says he expects Warner to get some competition.

“We do expect other bidders to come in,” says Geoffrey Mogilner, director of corporate communications for Midway. “We’ve been talking with a number of parties throughout this process. There’s always the possibility they’ll come in for all portions [of the company].”