OnLive closes its doors and reopens as a new company
In a rather swift and surprising move OnLive has filed for Assignment for the Benefit of Creditors (an alternative to insolvency), sold off its assets and reopened under a new owner.
OnLive had apparently reached a point where it was forced to make some tough financial decisions regarding debts and the ABC deal was the best way to resolve the issue. Under the deal OnLive's assets were bought up by investment firm Lauder Partners allowing the game streaming service to continue to operate.
Due to the financial problems the company could only rehire 50 percent of the original staff although those "un-hired" staff have been offered options to return as consultants and they promise to have a new round of hiring once additional funding has been secured.
A company statement said, "The asset acquisition, although a heartbreaking transition for everyone involved with OnLive, allows the companys core innovation and ongoing offeringsthe product of over a decade of hard work transforming the OnLive vision into realityto surviveand continue to evolve."
OnLive will continue to operate as before under the new ownership and promises no service interruption during the transition period.