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]