| BUSINESSWEEK ONLINE : NOVEMBER 13, 2000 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR -- INSIDE WALL STREET
'A Creeping Takeover' of Midway Games? Is Sumner Redstone stalking Midway Games ( MWY)? The company is a small player in video games: It designs interactive software played in coin-operated or home markets. Followers of Midway suspect that a big block of shares that traded at 7 a share on the Big Board on Oct. 31--exactly 1.2 million shares, or a 3.2% stake--was bought by Viacom Chairman Redstone. He already owns 28% through his holding company, National Amusements, so why more? For one thing, Midway hit 24 earlier this year, so 7 is a bargain. The stock dived on disappointing third-quarter results partly due to the industry's slump. Some wonder why Redstone hasn't made a bid for the rest of Midway. But why pay a lot for what he can get for less? ''It looks as if he's pulling a creeping takeover,'' surmises one money pro. Otherwise, it seems the logical time to make a bid, he adds. Midway's bigger rivals--THQ, Electronic Arts, and Activision--have rallied from their lows, while Midway has lagged. Analysts say demand will skyrocket next year, when a new generation of players will be available. Apart from Sony's PlayStation 2, Microsoft is due out with its X-Box machine, and Nintendo will introduce GameCube. Leo Rishty, editor of newsletter Unique Situation, says Midway is ripe for a takeover, but won't sell below 20. Sega and Microsoft are also possible buyers, since both want to make games for their own players. Viacom's Carl Folta declined comment. By GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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