Andre Yoskowitz
14 Oct 2012 23:24
OnLive, the cloud-based gaming company, was sold for just $4.8 million, literally pennies on the dollar for the company that was once valued at close to $2 billion.
The service allowed gamers to play PC games via a set-top box on your HDTV or on a PC that does not have powerful specs. The games were streamed via cloud servers and cost a nominal amount per month.
OnLive seemed to be having a good year, signing deals with Google's Android, Ouya and others. However, two months ago, the wheels fell off and the company laid off all its employees and began looking for a buyer before going bankrupt.
After the sale, the service remained active and the buyer, venture capitalist firm Lauder Partners, began taking new investments.
As of today, we have learned that Lauder paid just $4.8 million for the service: "Had the sale to the buyer not taken place, the assignee would have been left with inadequate capital to fund the significant costs to preserve and market OnLive's patents and other intellectual property, thus greatly reducing expected recoveries essentially to those of a forced piecemeal auction," added Joel Weinberg, president of Insolvency Services Group (ISG), the firm in charge of the potential bankruptcy proceedings.