The Verge is reporting that investor Gary Lauder formed OL2 and purchased OnLive’s assets and intellectual property for just $4.8 million. That may seem like a big number to some people but keep in mind that Gaikai, a competing service, was purchased by Sony for $380 million in July.
Here’s a snippet:
“According to the document, OnLive’s management believed they wouldn’t be able to find any additional funding for the company or be able to sell the business as of August, and believed an Assignment for the Benefit of Creditors (ABC) would be better than going bankrupt. It certainly seems so.
What’s harder to grasp is how OnLive’s assets could be worth only $4.8 million in total, especially considering that rival Gaikai sold for $380 million just a few months ago. According to OnLive assignee Insolvency Services Group, though, that’s the way it goes: the company claims to have hired independent third parties to value OnLive’s assets, and decided that they weren’t worth more to sell off piecemeal than if a single buyer could keep the company going.”