OnLives Assets Taken by New Company While OnLive Files Bankruptcy

Yesterday the internet really blew up after hearing the report that the widely popular cloud based gaming hub, OnLive, had laid off the majority of its staff and was planning to file bankruptcy. OnLive stayed quiet for quite a while after the original rumor spread like a wildfire. When various media outlets asked about the rumors, OnLive’s director of corporate communications denied the rumors by saying “we don’t respond to rumors, but of course not.” Everyone around the world found out the complete and full truth just hours later.

When the day finished up, OnLive released a official statement in the form of an email. Check it out:

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 you might expect, OnLive will not be shutting down it’s business operations any time soon. Nor does the company plan on it. Instead, OnLive has been acquired by an entirely new company. OnLive chose not to disclose the name of the newly formed company, but it’s bound that we’ll be able to find out soon enough. All we need to worry abut is that all of the existing services will continue without any interruption whatsoever. Sadly, many employees have been let go as a result of the merge. That said, according to a statement, it’s very likely that many of those employees that were let go could just potentially be re-hired as the new company gets ready to increase its workforce.

It’s also very unlikely that this new company could be shut down as it has been said that they have some very solid funding behind them. Still, details are very scarce at this moment. There has been no official statement as to whether or not the OnLive CEO, Steve Perlman, will be staying with the new company. I think its almost likely that he would due to him being the one that basically birthed the popularity of cloud-based gaming.

We’ll make sure to keep you update when this new company finally decides to reveal itself. I’m kind of thinking that it may not just be a new company though. With news of Sony purchasing Gaikai, it’s very well possible that Sony may have acquired all of OnLive’s assets unless they were looking at building their new cloud-based gaming service from the ground up.

Either way, let us know what you think about cloud-based gaming in the comments below!