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OnLive, an online game and app streaming business, made headlines recently when it announced it is restructuring its business. The company fired all of its employees and sold its assets to another company that will continue to do business under the same name. Hurt the most by this transaction are companies who invested in OnLive as they will lose all of their investment. One such company is HTC which said in a statement that it will lose $40 million in the deal.
“Due to lack of operating cash and an inability to raise new capital, OnLive had completed asset restructuring over the weekend. HTC estimates that it will need to recognize a $40 million provision for this investment loss.”
HTC is the only company thus far reporting a loss from OnLive’s restructuring. The manufacturer bought 5.33 million shares in OnLive for $7.50 each back in early 2011 with the possibility of using the service on its handsets.
[Via LA Times]
About The Author
Kelly Hodgkins
Kelly spent the last four years covering mobile technology at places like BGR, Gizmodo and The Unofficial Apple Weblog. Before writing, she spent a few years working with and teaching others how to use Adobe Flash and Macromedia Director. Even earlier than that, she spent several years as a Ph.D student in Microbiology. When she's not writing, she can be found fishing the lakes and hiking the mountains of Western Maine with her husband and tribe of children. You can follow her on Twitter @kellyhodgkins.
