If you’ve been following the debacle that is OnLive since last week, you’d the know that the cloud-based video game company was within days of filing for bankruptcy, but was rescued by a new collective group, who gutted the existing company over the weekend, laying waste to half of the employees in an effort to streamline and make OnLive profitably.
One company who backed the streaming video game company was the Taiwanese smartphone maker, HTC, who due to the reorganization, lost $40 million dollars. HTC released this statement:
“Due to lack of operating cash and an inability to raise new capital, OnLive had completed asset restructuring over the weekend. HTC estimates that it will need to recognize a $40 million provision for this investment loss.”
HTC can’t seem to catch a break, they continue to lose ground to Samsung and Apple in the smartphone race, they had to sell back nearly all of its stake in Beats Audio after a failed collaboration and now this mess. Hopefully HTC can pull through and dump its remaining investment in OnLive and focus strictly on smartphones again.