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BT is 'highly likely' to write off OnLive investment

BT is 'highly likely' to write off OnLive investment


British Telecom says it will likely have to write off its 2.6 percent investment in cloud gaming company OnLive, which dissolved and reformed after teetering on the verge of bankruptcy.

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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 about the future of OnLive, but we are keeping a close eye on developments. Questions should be directed to the company in question. BT customers who are customers of OnLive will continue to be able to access the service.

In any event, the 2.6 per cent shareholding in OnLive does not represent a significant investment for BT as a whole. We consider it highly likely that we'll have to write off our investment."

According to OnLive, the original company named OnLive is no more, as the company restructured itself using an alternative to bankruptcy called Assignment for the Benefit of Creditors (ABC) which apparently only transfers the company's assets to a new party. Under an ABC, the assignee of a company's assets is responsible for maximizing the value to creditors, but it seems like HTC and BT won't be getting much value for their buck here.