An SEC filing indicates that Midway’s San Diego studio has been sold to THQ, and its French and German divisions to holding companies formed by their heads, resulting in what is “effectively a management buyout for each regional distribution area.”

According to a report from Gamasuta, THQ will offer employment to at least 40 of the 100 employees working at the studio, but “specifically excluded from the bankruptcy purchase by THQ is the contract with the TNA iMPACT! video game in development at the studio, as well as the third-party tools such as Unreal Engine being licensed for the game’s creation.”

At least there’s some good news for the employees of Midway.

More through the link.

Thanks, Blue.

Midway’s Newcastle and San Diego studios may have to close up shop in two weeks if a buyer or investor is not found for the open-world game currently in the works.

“100 percent of my efforts and focus are on finding a solution to keep the studio going forward, making it viable and securing jobs in the team,” Newcastle boss Craig Duncan told the Guardian. “It may sound like a football cliché but this studio is too good a team to have to shut down – it would be a travesty.

“I met with a number of interested parties [during E3]. When we presented the new game everyone loved it and was really impressed with our proposition. What counts against us is the timeframe and the fact the market is tough currently for both investors and games companies.

“If I had £100k for every time someone said, ‘a year ago we would have bought you’, I could buy the studio personally.”

The two studios were not included in the bid $33 million bid Warner Bros made for Midway back in May.

Via CVG.