OnLive, a cloud-gaming company that had at one time been poised for preeminence in that market, was recently sold for a surprisingly cheap sum.
Venture capitalist Gary Lauder acquired OnLive for just $4.8 million, the company has confirmed in an e-mailed statement to CNET. The Mercury News was first to report on the acquisition, citing a letter it had obtained. The letter, which was reportedly sent to OnLive's creditors, claims that the company owed $18.7 million. The company's creditors will only receive one quarter of that back, according to Mercury News.
Over the summer, reports surfaced, saying that OnLive was close to shuttering its doors as it started to buckle under its enormous debt. Soon after, the company confirmed that its assets had been acquired by an outside investor, though the company didn't identify the owner or the purchase price.
OnLive's initial investors stood to lose the most in the transaction. Embattled mobile company HTC, in fact, announced in August that it was forced to take a $40 million investment loss on its cash infusion into OnLive. The company had acquired 5.3 million OnLive shares at $7.50 per share.
OnLive is one of the more popular cloud-gaming companies out there. The service allows players to play titles on-demand from their TV, PC, Mac, or tablet. The company offers many of today's most popular games.