OnLive sold for only $4.8 million
by Steve Watts, shacknews.com, Oct 10, 2012 1:00PM PDT
The struggling games streaming company OnLive sold its assets in August. Although users have been unaffected by the transfer, many have been wondering what OnLive is worth now. It's not pretty. The company once valuated at $1.8 billion (with a "B") sold for only $4.8 million (with an "M").
The figure comes from a creditor letter obtained by Mercury News (via Rock Paper Shotgun). Granted, the figure of nearly $2 billion was probably a tinge exaggerated, but it does show the dire straits the company was in. Gaikai, by comparison, sold to Sony for $380 million.
The company was also reportedly in $18.7 million of debt, and as a result creditors will only receive 26 cents on each dollar. The new owner, a venture capitalist named Gary Lauder, believes that the problem with the company was that it lacked a large enough investment, so presumably we'll see it attempting to beef up its operation as it rehires staff.