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Redstone takes Midway ride

May 11, 2004 6:07 AM

For many years, a strong relationship between WMS Industries (WMS) founder Lou Nicastro and Wall Street mogul Sumner Redstone was evident as Redstone actively purchased a major position in the Nicastro company.

Redstone’s WMS investments continued until he was the largest single stockholder. And when WMS spun off its non-gaming division into Midway Gaming Inc. (MWY), Redstone continued his interest by accumulating shares in that company, as well.

Last week, the octogenarian chairman of Viacom, whose interests include CBS television network, Simon & Schuster publishing and Blockbuster Entertainment, told the SEC he was going to increase his MWY holdings from 49.6% to 60%

Following the approval the FTC, Redstone announced he plans to reorganize the company by bringing in a horde of creative talent and establishing a new board of directors that would include his daughter Shari Redstone, his buddy Lou Nicastro, and his son, Neil Nicastro.