Midway Games to hold asset auction

CHICAGO - Midway Games Inc., the bankrupt creator of the "Mortal Kombat" video-game series, won court approval to sell most of its assets at an auction where a Time Warner Inc. unit will be the lead bidder.

U.S. Bankruptcy Judge Kevin Gross approved the guidelines that will govern Midway's June 29 auction, according to documents filed Wednesday in U.S. Bankruptcy Court in Wilmington, Del.

Warner Bros. Entertainment Inc., the lead bidder, offered $33 million for "substantially all" of the company's U.S. assets, including the "Mortal Kombat" franchise and development studios in Chicago and Seattle, court papers show.