In a press release issued a little while ago, troubled games publisher Midway revealed that they have entered into a “stalking horse” asset purchase agreement with entertainment gargantuan, Warner Bros., a subsidiary of Time Warner, Inc.

Additionally, Midway have filed a sale and bid procedures motion with the US Bankruptcy Court, which serves to provide notice that a sale to Warner Bros. is imminent, giving interested third-parties the opportunity to enter their own bids for Midway’s assets.

Under Midway’s current agreement, however, Warner Bros. stand to acquire a substantial amount of Midway’s assets, including the Mortal Kombat franchise and development studios in Chicago and Seattle, for a total of $33 000 000, subject to further adjustments.

The current agreement does not, however, include Midway’s San Diego or Newcastle development studios, nor their TNA wrestling franchise.

Midway, Warner Bros. and interested third-party buyers will enter into a bidding process before and after an expected court approval of the Warner Bros. agreement, at which time further Midway assets will be formally bid upon.

Hopefully this whole process will bring to an end the troubled times that Midway has been having, especially over the last year.