This paper focuses on multi-target parameter estimation of multiple-input multiple-output (MIMO) radar with widely separated antennas on moving platforms. Aiming at the superimposed signals caused by multi-targets, the well-known expectation maximization (EM) is used in this paper. Target’s radar cross-section (RCS) spatial variations, different path losses and spatially-non-white noise appear because of the widely separated antennas. These variables are collectively referred to as signal-to-noise ratio (SNR) fluctuations. To estimate the echo delay/Doppler shift and SNR, the Q function of EM algorithm is extended. In addition, to reduce the computational complexity of EM algorithm, the gradient descent is used in M-step of EM algorithm. The modified EM algorithm is called generalized adaptive EM (GAEM) algorithm. Then, a weighted iterative least squares (WILS) algorithm is used to jointly estimate the target positions and velocities based on the results of GAEM algorithm. This paper also derives the Cramér-Rao bound (CRB) in such a non-ideal environment. Finally, extensive numerical simulations are carried out to validate the effectiveness of the proposed algorithm.