Cloud-based gaming service OnLive officially acquired by ‘newly-formed company’ with ‘substantial funding’

Yesterday, it was reported that the popular cloud-based gaming hub OnLive had allegedly laid off a majority of its staff and planned to file for bankruptcy. OnLive remained quiet for several hours after the initial rumor became widespread. When asked about the potential folding of the company, OnLive’s director of corporate communications refuted the claim by saying “we don’t respond to rumors, but of course not.”

As the business day wrapped up, the official word was sent out in the form of an email.

We can now confirm that the assets of OnLive, Inc. have been acquired into a newly-formed company and is backed by substantial funding, and which will continue to operate the OnLive Game and Desktop services, as well as support all of OnLive’s apps and devices, as well as game, productivity and enterprise partnerships. The new company is hiring a large percentage of OnLive, Inc.’s staff across all departments and plans to continue to hire substantially more people, including additional OnLive employees. All previously announced products and services, including those in the works, will continue and there is no expected interruption of any OnLive services.

We apologize that we were unable to comment on this transaction until it completed, and were limited to reporting on news related to OnLive’s businesses. Now that the transaction is complete, we are able to make this statement.

As it turns out, OnLive will not be shutting down its business operations any time soon. Instead, the company has been acquired by an entirely new entity. OnLive has chosen not to disclose the name of the newly-formed company, but the good news is that all existing services will continue without interruption. Unfortunately, many employees have been let go as a result of the merger. However, according to the statement, many could potentially be re-hired as the new company plans to increase it’s workforce. Details are still scarce, and there’s no official word regarding whether or not OnLive’s CEO Steve Perlman will have a future with the new company. If you’re not familiar with OnLive, you can check out our hands on from CES.

Source: The Verge


About the Author: Colton Kaiser

Born in southern California, Colton is a self-proclaimed tech enthusiast. His first Android handset was the Motorola Backflip, though his passion for technology began when he received his first Windows 95-powered PC for a Christmas present as a child. Dumbfounded by the capabilities of the machine, he discovered an inherent fascination for software and electronics. Colton wrote for numerous news publications before establishing his own popular technology-oriented website. When he's not writing about or playing with the latest gadgets, he enjoys watching football and destroying friends in his fantasy league, preferably while eating Mexican food. Colton currently attends the University of Redlands, where he plans to major in journalism.