OnLive racked up $30 million in debt before Lauder Partners took over
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It's not really any secret that cloud gaming service OnLive has been facing some financial trouble of late, but what's shocking is just how deep their particular pool of hot water ended up being. Before being closed and re-opened this week, they'd manage to rack up debts totaling somewhere around $30 million.
"It was a company that was in dire straits," said Joel Weinberg, Insolvency Services Group CEO. "It only had days to live in terms of cash flow and the like. Something had to have been done immediately, or it would have been a hard shutdown, which would have been a disaster."
Unfortunately, those debts aren't going to be paid in full any time soon, as creditors can only expect to receive ten cents, at most, for every dollar owed by OnLive.
There's a spot of silver lining for some, however. OnLive has been acquired by Lauder Partners, which hired about 50% of the employees left unemployed by OnLive's shutdown. Also, the original founder and CEO of OnLive is receiving no compensation whatsoever for the deal, in favor of hiring more employees.
Source: Mercury News
Via: GamesIndustry International 1, 2
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Nicholas Greene
FollowTech_Light A gamer at heart, Nick started writing when he was a child. He holds a BA in English, works as a freelancer, and loves every minute of it. One day, he hopes to net himself a career in game design - but that's something for the future. |
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