We’ve all questioned whether or not Steve Perlman will continue to be the CEO at OnLive after all of the fiscal difficulties. It’s been confirmed that Perlman will continue to be the CEO at OnLive though. Although it isn’t surprising, it was also questionable after an affiliate of the Lauder Partners investment firmed acquired all of OnLive’s assets. At the very least, the brains behind OnLive gets to stay, right?
“Steve continues as CEO and is currently concentrating on the transition; once this is complete, he’ll be very focused on our next product releases and the vision,” OnLive PR said to OnLivefans in a statement.
“There will be changes to the organization both with old and new OnLive staff that will be bringing new features and games to the service. There will be more announcements – both large and small, such as the arrival of the Vizio CoStar and the Ouya Kicktarter project, and stay tuned for major announcements coming soon.”
Prior to this massive buyout, OnLive had been estimated to be between $30 – $40 million in debt, according to the CEO of Insolvency Services Group, Joel Weinberg, in an interview with San Jose Mercury News. The situation as we now know, was so severe that OnLive had only a few short days to live at its current rate. “It was a company that was in dire straits. It only had days to live in terms of cash slow and the like,” said Weinberg, the man who signed off on the insolvency transaction. “Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster.” I’m glad a hard shutdown didn’t end up happening. Fans of OnLive would of been very disappointed to see that they could no longer connect to the OnLive servers that hosted their games, not to mention all the money consumers would lose due to not having access to their purchased games anymore.
Weinberg didn’t say as to how much Lauder purchased the company for, but he did estimate that after “liquidating” its non-operating assets, it could pay back creditors up to five or ten cents on each dollar owed. That’s actually an extraordinary amount to pay back (in a good way). Apparently their creditors won’t be getting the full amount back. I guess a lot of people are losing out on the OnLive deal, eh?
As for the users of the OnLive service, things so far have still not been interrupted as promised by Perlman. Everything is going through a very smooth transition despite the insanity of this dangerous fiscal situation. Things are looking up though with the Ouya Kickstarter project amongst some other projects, hopefully we’ll see some drastic increase in revenue after that officially launches. I’m also quite curious as to who actually owns OnLive though. Sources have said that they have quite the substantial funding behind the company, which really makes me curious as to who it actually is.
Anyone looking forward to seeing OnLive on the Ouya? Will you actually use the Cloud Gaming service more when that arrives? Let us know in the comments below!