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HTC books $40 million loss from OnLive investment

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HTC has booked a $40 million loss from its investment in OnLive.

HTC One X Mobile Wi-Fi 1020px stock
HTC One X Mobile Wi-Fi 1020px stock

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 $40 million loss to the Taiwan Stock Exchange. The company won't be left without a mobile gaming strategy, though — it was the first hardware partner announced for Sony's PlayStation Mobile program.

Update: HTC gave us the following statement: "Due to lack of operating cash and an inability to raise new capital, OnLive has completed an asset restructuring over the weekend. HTC estimates that it will need to recognize a $40 million provision for this investment loss."