OnLive Sacks all Employees, Discloses New Owner

The abrupt sale of assets of OnLive and wiping out of all staff on Friday surprised everyone. The cloud gaming company however, broke the silence and stated additional details on the company’s sale Sunday night. It also offered some information about its first new investor.

OnLive has been sold to an affiliate of its first investor Lauder Partners, who was a part of OnLive’s previous series C. The new company is disclosed to have the same name, OnLive.

The company fired all employees and offered less than half of them a job with its new owner. The release also confirmed that all of OnLive’s shareholders, investors, employees and management, got wiped out in the deal.

A release was sent out for reporters Sunday night, which talked of the asset sale. It said, “OnLive, Inc.’s board of directors, faced with difficult financial decisions for OnLive, Inc., determined that the best course of action was a restructuring under an “Assignment for the Benefit of Creditors.” The assignee of the company’s assets then sold all of OnLive, Inc.’s assets (including its technology, intellectual property, etc.) to the new company.”

OnLive also noted to be on a look out for additional funding, to hire back some of the employees that the company fired. However, it also gave the sacked employees a choice to consult for the newly formed OnLive in exchange for options in the new company. Now it is a matter of choice as to how many of them accept the offer, given the fact that they lost all previous shares.… Read the rest

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