The online gaming service OnLive has sold all of its assets to a newly formed company operating under the same name, while it goes through a major corporate restructuring.
In a statement, the California-based OnLive said its service will “continue without interruption.”
This move, referred to as an Assignment for the Benefit of Creditors, is one of the options open to US companies in order to avoid bankruptcy.
The transfer includes the OnLive game and desktop services, all OnLive devices and apps, as well as all of OnLive’s gaming partnerships.
“Users are not expected to notice any change whatsoever,” added the statement. “All of their purchases remain intact and available.”
According to its own figures, OnLive has an “active base of over 1.5 million subscribers,” with more than 2.5 million subscribers in total.
The service, which operates in the US, UK and Belgium, enables users to rent or buy from a catalogue of several hundred console games that can be played on various internet-connected devices and its own hardware.
The assets were transferred on August 17. However, in a controversial decision, the company’s employees, said to number more than 150 people, were reportedly fired in an all-staff meeting.
The company said that with new investment, it plans new products and services in the coming weeks and months, and that a large percentage of employees will be re-hired.
“Almost half of OnLive’s staff were offered employment at their current salaries in the new company immediately upon the transfer,” said the statement, “and the non-hired staff will be given offers to do consulting in return for options in the new company. Upon closing additional funding, the company plans to hire more staff, both former OnLive employees as well as new employees.”
OnLive launched in 2010. Its service recently expanded to include an app for Google TV and some LG products. “We expect this growth to continue under the new company,” said OnLive.
It also recently announced a partnership with OUYA, the upcoming Android-based games console that became a big hit on the crowd-funding site Kickstarter.
HTC was one of OnLive’s investors, having ploughed a reported $40m into the company, which it probably won’t get back, seeing as only assets rather than shares have been transferred in the August 17 transaction.
Via The Verge