Midway Games Names Shari Redstone Chairman

Video-games publisher Midway Games(MWY Quote - Cramer on MWY - Stock Picks) has elected Shari Redstone chairman. Redstone replaces Kenneth Cron, who is leaving the board after three years.

Redstone, daughter of Midway's largest shareholder, Sumner Redstone, had been vice chair.

The ascension of Shari Redstone is an important development for the struggling game maker.

The company was reporetedly the cause of a conflict between father and daughter, according to a Los Angeles Times article in August.

Shari Redstone was reported to have disagreed with her father's interest in Midway and the use of financial resources that could have better helped Redstone's Viacom(VIA Quote - Cramer on VIA - Stock Picks) holding instead of Midway, the article said.

In 2005, Sumner Redstone pledged National Amusements' stock as collateral for a $425 million loan from Citigroup(C Quote - Cramer on C - Stock Picks) and was reported to have used the personal debt to buy Midway shares. Citi issued a margin call later that year on the loan after shares of Midway declined.

Sumner Redstone then transferred his personal holdings in Midway to National Amusements, which took on the debt.

The disagreement between the Redstones is reported to have heightened when Sumner Redstone bought more shares of Midway earlier this year through National Amusements.

Sumner Redstone holds an 87.5% stake in Midway individually and through Viacom parent National Amusements.

Shari Redstone is also a vice chair of Viacom and CBS(CBS Quote - Cramer on CBS - Stock Picks), which is also controlled by Sumner Redstone through National Amusements.

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