Midway shares boosted as Viacom chairman moots buyout

Shares in US publisher Midway have performed strongly over the past couple of days following an SEC filing from the company's largest shareholder, Viacom chairman Sumner Redstone, which suggested that he may buy the firm outright.

In a statement to the regulatory body, three possible courses of action were outlined - seeking to increase his stakeholding in Midway, seeking representation on the company's board, or acquiring the publisher in a complete buyout - although, of course, it remains eminently possible that none of these courses of action will be pursued.

Redstone owns some 48 per cent of Midway's stock at present, held both personally and through his company National Amusements, and his interest in the company is thought to be largely focused on its potential value in the arcade market rather than the home console sector.

News of his possible buyout came just as Midway announced its intention to issue some 11 million shares of common stock in an offering designed to raise further capital for the company's operations.

Last week, the publisher bought out Surreal Software, developer of action title The Suffering, after better than expected sales of the game helped to boost the company's quarterly results well beyond its original projections.