OnLive sold for just $4.8 Million, in debt by $18.7 Million
Laurence Howe / 4 years ago
A letter from OnLive’s assignee that was sent to creditors reveals the company and all of its assets were sold for just $4.8 million. The document indicates the sale took place a few days before massive layoffs essentially gutted the streaming game company.
Those in charge of OnLive at the time felt this was the only course of action short of filing for bankruptcy. The company didn’t believe they would be able to acquire any additional funding to keep the ship afloat. OnLive reportedly had $18.7 million in debt when Lauder purchased the firm which didn’t include future leases or other contractual obligations. It is believed that creditors will ultimately only receive about $0.26 for every dollar they’re due.
Interestingly enough, rival cloud gaming service Gaikai was picked up by Sony just a month earlier for $380 million. It’s hard for some to believe that OnLive was worth less than $5 million despite offering a nearly identical service.