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OnLive assets sold for $4.8m

OnLive assets sold for $4.8m

Wed 10 Oct 2012 7:43am GMT / 3:43am EDT / 12:43am PDT
HardwareFinancial

Letter shows price paid by Lauder Partners and new OnLive

Documents have come to light that show cloud gaming service OnLive's assets were sold for just $4.8 million to Lauder Partners, less than half of its $18.7 million debts.

The letter was seen by Bay Area paper MercuryNews and was written by Joel Weinberg, the CEO of Insolvency Services Group, which was handling OnLive's shut down and sale.

"Had the sale to the buyer not taken place, the assignee would have been left with inadequate capital to fund the significant costs to preserve and market OnLive's patents and other intellectual property, thus greatly reducing expected recoveries essentially to those of a forced piecemeal auction," said Weinberg in the letter.

The authenticity of the letter was confirmed by Weinberg's legal representative.

"When planned financing didn't work out, the company was left with few options," responded OnLive in a statement.

"Transitioning through this unexpected event has not been easy, but it has left the company much healthier."

OnLive was acquired by Lauder Partners in August, becoming a new company and leaving behind its substantial debts and the majority of its staff.

GamesIndustry International spoke to the new OnLive last month, when new CEO Charles Jablonski declared the new company had to prove itself as a business.

"If I had to encapsulate what the major strategic change of direction is it's this - this is going to be a business. It's capable of being a great business and that's what we need to concentrate on. But you don't cost-cut your way to success. Businesses succeed because they have revenue. We were very good in proving the technological thesis, we now have to prove the business in the short and medium term."

2 Comments

Nick Parker Consultant

306 186 0.6
This is not news, this number has been the source of much corridor discussion draw dropping. Lauder Partners (headed by Gary Lauder, the grandson of Estee Lauder) got a good deal, but a good deal for what? The business model seems to be creaking as entry pricing has to be attractive at this early stage but games are not movies; OnLive is not Netflix which can survive on $10/month after 13 years of proving the concept. Gary Lauder must have something in mind....

Posted:2 years ago

#1

Mark Hughes Freelance programmer

15 40 2.7
- "preserve and market OnLive's patents and other intellectual property"

They become a patent troll and go after Gaikai, now they're owned by Sony?

Posted:2 years ago

#2

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