OnLive was sold for just $4.8 million to venture capitalist Gary Lauder, according to a report by the Silicon Valley Mercury News. OnLive, before it was sold was $18.7 million in debt. This figure does not include money the company will owe in the future for it leases and other contractual obligations. Creditor's will also now only receive 26 cents on each dollar they were owed.
OnLive which had raised more than $40 million from AT&T, HTC and other investors, had been looking to sell for quite some time. A report first came out in August that OnLive had sold all of its assets and had let go all of its employees. However no other details had been released.
"Had the sale to the buyer not taken place, the assignee would have been left with inadequate capital to fund the significant costs to preserve and market OnLive's patents and other intellectual property, thus greatly reducing expected recoveries essentially to those of a forced piecemeal auction," said Joel Weinberg, CEO of Insolvency Services Group, the company named as the assignee in the insolvency.
"When planned financing didn't work out, the company was left with few options," the new OnLive said in the statement. "Transitioning through this unexpected event has not been easy, but it has left the company much healthier."