OnLive sold to new company, OnLive, amid layoffs: the full story
OnLive, the popular streaming gaming company, has been sold to a "newly-formed" enterprise amid controversy and accusations of mismanagement. Although there is clear evidence of mass layoffs, company spokespeople have said that nearly half of employees will be re-hired by the mysterious new venture, which will be called OnLive as well. Although the meaning behind the changes is unclear, OnLive says that service will continue. Below is the full story, from the earliest rumors of the reshuffle, to the latest, breaking news on the upheaval.
OnLive chairman breaks silence, says the streaming game company 'expects great things'
It's been seven months since OnLive's famous turmoil, and though the company never stopped streaming in the meanwhile, OnLive's new owner Gary Louder has maintained a near-perfect radio silence. Today, however, in his very first post on the OnLive Blog, he says the company's back in action, with 90 employees working out of a new Mountain View office and a new SVP of Engineering. Don Gordon, former VP of broadcast solutions at Gracenote and COO at ActiveVideo Networks, is joining the cloud...
'The Witcher 2' finally comes to OnLive today, includes free PC copy if you pay for streaming
We haven't heard a peep out of OnLive since the company's near-collapse last year, but the cloud gaming service has never stopped. Today, the company's bringing its first new title to the platform since September, and it's a pretty good deal to boot. You can now purchase a streaming copy of The Witcher 2: Enhanced Edition to play via OnLive for $19.99, and get a full downloadable PC copy of the game from Good Old Games, too. Even if you decide not to stream the game, you're still getting your...
OnLive's assets sold for just $4.8 million, roughly three days before mass layoffs
When we chronicled the collapse of streaming game company OnLive, one source told us that the company's assets sold for a song. They claimed that investor Gary Lauder took ownership of the company for just $4 million. As it turns out, that number wasn't far off. Along with the San Jose Mercury News, we've obtained a copy of the formal letter that OnLive's assignee sent to the company's creditors. Here's what we've learned:
On August 14th, just three days before OnLive conducted mass layoffs,...
Outgoing OnLive CEO Steve Perlman urges subscribers to stay in heartfelt open letter
Steve Perlman, founder and outgoing CEO of the troubled cloud gaming service OnLive, has asked disgruntled fans to "give the OnLive team a chance to regroup." Writing in an open letter sent to OnLiveFans.com, Perlman acknowledges that the company has been through a "difficult transition," but attempts to set the record straight about a controversial legal maneuver that saw scores of employees laid off without severance pay.
"We had critical matters like healthcare in place — with financial...
OnLive lost: how the paradise of streaming games was undone by one man's ego
"I'm the one that brought you here. I'm the one that ultimately made decisions, and I'm the one that ultimately takes responsibility. So I am sorry, and it didn't end up exactly as we'd hoped."
Two Fridays ago, Steve Perlman told the 200 employees of cloud gaming company OnLive that it was all his fault. He thanked them for their hard work, and then he had HR show them the door with no severance pay.
Then, through a legal insolvency tool, Perlman transferred all of OnLive’s assets to a...
OnLive founder Steve Perlman is out: investor Gary Lauder assumes control
Last week, OnLive said that founder Steve Perlman would stay on as the new CEO, after the company underwent a painful insolvency that resulted in the dissolution of the original cloud gaming company and the creation of a new entity. Not anymore. Steve is "departing to work on his myriad of other projects," according to a new press release release, which presently include a promising wireless technology called DIDO, and possibly other stealth projects at his incubator Rearden Labs. Gary...
Microsoft courts OnLive developers for Xbox and Kinect projects
Microsoft is openly courting developers dumped in mass layoffs by cloud gaming service OnLive, hosting a mixer for potential hires at its Mountain View campus. "We are eager to speak to individuals and teams affected by the OnLive transition," reads a description on events site EventBrite. "With the stunning success of Xbox/Kinect and the accelerated growth of this business, we are looking to add key players who want to make a real impact in creating groundbreaking new products and services."
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OnLive CEO stays on board to take the company 'to a higher level'
Cloud gaming company OnLive has revealed to OnLive Fans that it will keep Steve Perlman as its CEO following the turmoil the company has seen over the past week. Perlman's position was up in the air when the company shut down last week and laid off many of its staffers. Since then, OnLive has rehired a number of its employees back after starting a new venture — also called OnLive — which is said to be a complete "reboot" of the company. The company apparently was in debt to the tune of...
OnLive had over $30 million in debt and 'only days to live,' says ABC fiduciary
Last weekend, cloud gaming startup OnLive shut down the company, gave away its assets and laid off all its staff, only to immediately build a new firm and hire a number of them back. Now, we're learning why: The San Jose Mercury News reports that OnLive owed between $30 million and $40 million in debt at the time. That's from the lips of Joel Weinberg, CEO of Insolvency Services Group, who has been revealed as the mysterious assignee in the insolvency transaction. "It was a company that was...
BT is 'highly likely' to write off OnLive investment
HTC wrote off its entire $40 million investment in troubled cloud gaming company OnLive after the company spontaneously dissolved and reformed this weekend, and it now looks like fellow investor BT may do the same. The British telecommunications company, which purchased a 2.6 percent stake in the company in early 2010 and early exclusive access to the UK version of the service, told TechRadar that a write-off was "highly likely." Here's the full statement:
"We cannot comment on speculation...
HTC books $40 million loss from OnLive investment
As if HTC didn't have enough financial woes already, it's now been hit by the troubles at OnLive. IDG reports that the Taiwanese manufacturer will lose its $40 million investment in the cloud service, which was made last February in an attempt to boost its smartphone gaming credentials.
While we heard that OnLive has filed an Assignment for the Benefit of Creditors (ABC) in a move that could get investors some sort of return, it appears that HTC isn't so optimistic and has announced a whole...
OnLive sheds light on acquisition, promises new products and uninterrupted service
OnLive has just issued a statement about its major corporate shake-up, confirming the sale of its assets, and promising that its services will "continue without interruption." The company says that on August 17th, all of its assets "were acquired by a newly formed company that will continue to operate under the OnLive name," and has confirmed that it is restructuring under an "Assignment for the Benefit of Creditors" — an option for struggling companies that allows them to transfer all of...
OnLive's bankruptcy protection filing leaves former employees in the dark
"OnLive ... will continue to operate," the statement read. "...there is no expected interruption of any OnLive services."
It was a statement that read as an assurance: everything is fine, we're still here, it's business as usual. But it was clear that everything wasn't fine. Earlier yesterday, it was reported that all of OnLive's 150-200 staff were laid off. Now, multiple sources have confirmed that the streaming game company will be filing an Assignment for the Benefit of Creditors (ABC), an...
OnLive's new mystery owner is reportedly one person, and other revelatory rumors
What's really going on at OnLive, the streaming game company that reportedly laid off its entire staff today? The official word is that the entire firm's assets were acquired by a "newly-formed company" with "substantial funding," and thus it's business as usual for all... except, perhaps, for the number of individuals we saw leaving the Palo Alto headquarters with single white sheets of paper and boxes of personal possessions. What will become of the company and its employees? We still don't...
Official: OnLive sold to 'newly-formed company,' will continue service
As the business day comes to a close, it looks like OnLive might end up pretty much where it started. Earlier today, rumors swirled that streaming gaming provider had issued pink slips to much of its staff, mostly sparked by a series of tweets from game developer Brian Fargo. According to Fargo, he'd received an email from an OnLive staffer with news of sweeping job cuts at the company, and hints that a reorganization of the service was afoot. Shortly thereafter, company spokesman Brian...
Inside OnLive: employees fired during all-hands meeting, acquisition could be imminent
Widely spread — but still unconfirmed — reports of mass layoffs at cloud-based gaming company OnLive are reportedly tied to an acquisition of the three-year-old company by an unknown third party.
According to a report from alleged former OnLive employees, at least 50 percent of the company's staff was let go this morning, reports Engadget. Staffers were reportedly told that OnLive's new owner had already sent offer letters to remaining employees. An ex-OnLive staffer estimates that OnLive...
OnLive reportedly hit with mass layoffs, possibly filing for bankruptcy (updated)
Cloud-gaming company OnLive is rumored to have been hit with layoffs today, according to veteran video game developer Brian Fargo, who says he's received communication from a former employee warning of the company's demise.
According to an email forwarded to Polygon from an anonymous, supposedly former OnLive staffer, the company will "no longer exist" as of today.
"I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist," reads an email forwarded to...
