Cloud gaming platform OnLive fired half of its staff Friday as the company reported that it was being acquired by an entity it wouldn’t name. Today, the purchaser was identified as Lauder Partners, an early investor in the company.
Earlier, OnLive said it would continue to operate its game and desktop services. The company will file for a status similar to bankruptcy called “Assignment for the Benefit of Creditors,” which provides it with some level of protection.
Lauder is forming a new entity around what’s left of OnLive. About half of Online’s staff were offered jobs at current salary levels in the new company. Founder and CEO Steve Perlman, who’s blamed by many for the company’s dire straights, isn’t among them. He and other executives are “receiving reduced compensation to allow the company to hire as many employees as possible within the current budget,” according to Digital Trends.
In a statement, the company said, said that the move…
… although a heartbreaking transition for everyone involved with OnLive, allows the company’s core innovation and ongoing offerings—the product of over a decade of hard work transforming the OnLive vision into reality—to survive—and continue to evolve…”
It also said its new entity will be “backed by substantial funding.”
How bad was OnLive’s predicament? Bad enough that some reports say it was maintaining 8,000 servers to host 1,800 simultaneous users.
- OnLive acquired by Lauder Partners, but who will own the streaming video game company in the future? [Digital Trends]
- OnLive service to continue as company transitions to new form (updated) [Ars Technica]