OnLive Folded Into New Company with Same Name, No Changes for End Users

On Friday, corporate drama erupted over OnLive, the popular cloud streaming game company who cut loose its entire staff and was rumored to be on the verge of bankruptcy. Now the company is shedding some light on the situation.

The Verge is reporting that OnLive has come forward with an official statement regarding Friday's shake-up, which saw the entire staff fired during an all-hands meeting and questions began swirling about exactly what was going on.

As it turns out, the company's assets "were acquired by a newly formed company that will continue to operate under the OnLive name" on August 17, and the original company has restructured under what's known in California as an "Assignment for the Benefit of Creditors" -- not quite bankruptcy, but the end result is largely the same.

Venture capitalists Lauder Partners has been named as the first investor in the new OnLive, which is likely no coincidence since the firm also invested in the original version of OnLive back in 2009.

The new OnLive plans to rehire additional staff "upon closing additional funding," which is said to include up to 50 percent of the original group who got the axe on Friday, losing their stock options in the process.

For end users, there's better news: The company continues to operate without interruption, and OnLive promises new product to come.

"The OnLive Game and Desktop Services, all OnLive Devices and Apps, as well as all OnLive partnerships, are expected to continue without interruption and all customer purchases will remain intact; users are not expected to notice any change whatsoever," the company statement reads. "OnLive’s current initiatives will continue as well, with major announcements of new products and services planned in the coming weeks and months."

OnLive touts 2.5 million subscribers, with an "active base of over 1.5 million subscribers."

Follow this article’s author, J.R. Bookwalter on Twitter

 

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