Three days ago, it appeared that the company was set to shut its doors, as all employees were fired with small severance packages. Other reports claimed the service was on the verge of bankruptcy.
Today, it appears that the company has been purchased by a "newly-formed company," with half of the employees being re-hired to the new company. Supposedly, this new company is run by one man with 'substantial funding.' The individual is said to have been very 'impressed' with the idea on OnLive; enough to acquire it.
One report today claims the move was made as a way to eliminate the value of the current employees' stock. Because of the acquisition, staffers will now have value-less OnLive stock.
OnLive was allegedly seeking a $1 billion buyout, and received bids, but none approached that figure. Another report claims OnLive was averaging about 1800 concurrent users, a laughable sum for a company burning through money at a quick pace.
Written by: Andre Yoskowitz @ 18 Aug 2012 15:52