THQ acquires Midway San Diego

THQ has purchased bankrupt publisher Midway's San Diego development studio, Gamesutra has reported.

According to the industry website, the Mortal Kombat studio's French and German division have also been sold to holding companies formed by their heads, resulting in a mangement buyout for each regional distribution area.

THQ will offer employment to 40 of Midway San Diego's 100 employees, 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".

It has been rumoured that THQ could use its newly-acquired studio to expand its WWE and UFC wrestling franchises, after it expressed intentions to bring the titles to new platforms during a recent earnings call.

Midway is currently in the process of closing, after selling most of its assets to Warner Bros earlier this year in a deal worth $49 million (£29 million).