OnLive Formed into New Company
Ryan Bloom / Aug 20th, 2012 No Comments
The process, known as assignment for the benefit of creditors, is a common business practice used to avoid bankruptcy. Under those procedures, a neutral party will be assigned to sell off the company’s assets.
The new company will continue to operate under the OnLive name. All existing services will continue uninterrupted. Those services include the OnLive Game and Desktop Services, the OnLive Devices and Apps, and OnLive partnerships.
Many employees of OnLive were attacking the company and alleged the business screwed them over. Restructuring as a new company is a way for OnLive to stop the criticism.
Much of the OnLive staff was let go as a corresponding move but the company said that almost half of its staff were given employment opportunities with the newly formed company. No OnLive staff or OnLive shares could transfer as part of the proceedings. More of the laid off employees could potentially be hired back with the new company if it is able to acquire additional funding.
An affiliate of Lauder Partners is the first investor confirmed to be involved in the newly formed OnLive. Lauder Partners previously invested in the original OnLive in 2009.
OnLive is a service that allows users to log into a cloud-based system to play high-end games or use apps on devices such as low-end computers and iPads via streaming. The service is available in many forms including as a small console-style system and as an application for televisions and tablets.
The cost of the sale was not disclosed. The service was once valued at $1.8 billion but it is doubtful the company sold for that much. The company revealed it has a subscriber base of 2.5 million, with 1.5 million of those active. For a company that has been operating for two years, those numbers are relatively low.
tags: ipad , news , onlive , pc , streaming