OnLive Assets Acquired by New Company

A lot of rumours are going on lately about the closure of OnLive Inc.
The company offering a cloud gaming platform and a cloud desktop solution is going through financial problems.
On august 17 it appears that a mail was sent out from their employers affirming that onLive was going to be closed and that they were all losing they job, the rumour was spread, among the others, by Brian Fargo, the video game designer, producer, programmer and executive who affirmed in his twitter account to have received the following email:

I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist. Unfortunately, my job and everyone else’s was included. A new company will be formed and the management of the company will be in contact with you about the current initiatives in place, including the titles that will remain on the service.

It has been an absolute pleasure working with you and I’m sure our path with cross again.

Considering OnLive as one of the most important exponent of the cloud gaming market, there was no knowledge of any issue since the conflict with Microsoft about using Windows 7 which apparently had been resolved. Moreover, it was assumed that OnLive was going to be one of the companies that would give more support to the newborn console Ouya.

We contacted directly OnLive inc. and Jane Anderson, OnLive PR, sent us the press release with the official statement in which it is explained that they are facing financial difficulties, therefore the decision to be acquired by a new company and that they will continue to operate as ”OnLive”, assuring that the assets acquisition allows the innovation and evolution of the company.

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.
Unfortunately, neither OnLive, Inc. shares nor OnLive staff could transfer under this type of transaction, but almost half of OnLive’s staff were given employment offers by the new company at their current salaries immediately upon the transfer, and the non-hired staff will be given offers to do consulting in return for options in the new company. Upon closing additional funding, the company plans to hire more staff, both former OnLive employees as well as new employees.