Analyst Michael Pachter once estimated that Redstone spent between $500 and $700 million on Midway stock since 1983. But Midway's stock price has plummeted in recent years, falling from $23 a share in 2005 to 38 cents last Friday.

Redstone's controlling interest was sold to investor Mark Thomas for $0.0012 a share. Redstone will take a loss on the sale, but stands to gain from tax benefits.

Thomas will inherit the company's $70 million in debts, and will be charged with stomaching the company's growing losses and frequent layoffs.