With no other bidders in the auction Warner Bros. picked up Midway's intellectual properties as well as the Chicago (Mortal Kombat series, Stranglehold) and Seattle Studios (The Suffering, This is Vegas) for $33 million. The next Mortal Kombat game a return to its old violent self, we could very well see another Mortal Kombat vs DC Universe or perhaps even LEGO Mortal Kombat (Warner also owns Traveller's Tales) somewhere in the future.
What happens to Midway's Newcastle and San Diego studios remains to be seen, but their time is running out.