OnLive Was OnDead Last Summer: $18 Million In Debt, Sold For $4.8 Million

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Another step in the OnLive saga comes to us from the Mercury News where reporter Troy Wolverton writes that investor Gary Lauder paid $4.8 million for the company assets and that OnLive was $18 million in debt after raising $40 million from AT&T and others. The news appeared in a letter from Joel Weinberger, CEO of Insolvency Services Group.

OnLive sold itself to itself in a clever financial maneuver last August and is now a new company using the OnLive brand and IP – and customer list. As of today the organization is still offering gaming service. Wolverton notes that this deal was the “best that OnLive could get”.

The company said in an August release the “OnLive partnerships, are expected to continue without interruption and all customer purchases will remain intact; users are not expected to notice any change whatsoever.”

OnLive streams video games over the network to various devices including consoles and computers. The subscription-based service allowed users to access and play multiple games at high resolution while all processing occurred in the company’s server farm.