OnLive survives death with new company established
20th Aug 2012 | 12:07
Embattled cloud gaming firm
A nightmare week for the San Francisco company reached a crisis point on Friday when staff were informed that the company needed to take drastic action to receive new funding.
In a complex manoeuvre, OnLive has effectively ceased operations while a new company - with no debt burden - has been established. The new company has acquired the OnLive tech, servers and various other assets and will continue the service as normal.
In a statement released to CVG, the firm said that nearly half of OnLive's previous workforce were offered jobs at the new company. It is not known how many have accepted the offer from the new company.
All share options and other salary contracts have been terminated. It is believed that company CEO Steve Perlman will not receive any compensation through the transaction to the new business.
OnLive has announced that Lauder Partners, which had invested in the previous company, has become the first investor of the new venture. It is not known how much equity Lauder Partners has in the company.
All OnLive services are expected to continue without interruption, the firm added.
"The asset acquisition, although a heartbreaking transition for everyone involved with OnLive, allows the company's core innovation and ongoing offerings to survive and continue to evolve," it said.