OnLive Isn’t Closing, But It Has Been Acquired Into A New Company

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onlive-consoleEarlier today rumors started to swirl that OnLive was going out of business and had fired pretty much everyone during an all-hands meeting this morning. When asked for comment initially OnLive refused to comment but has now released a statement that you can read below.

We can now confirm that the assets of OnLive, Inc. have been acquired into a newly-formed company and is backed by substantial funding, and which will continue to operate the OnLive Game and Desktop services, as well as support all of OnLive’s apps and devices, as well as game, productivity and enterprise partnerships. The new company is hiring a large percentage of OnLive, Inc.’s staff across all departments and plans to continue to hire substantially more people, including OnLive employees. All previously announced products and services, including those in the works, will continue and there is no expected interruption of any OnLive services.

We apologize that we were unable to comment on this transaction until it completed, and were limited to reporting on news related to OnLive’s businesses. Now that the transaction is complete, we are able to make this statement.

Just so we are clear I don’t have much confidence in anything in that statement above regarding this new company continuing to fully support OnLive as it currently is. The reason I don’t believe it is if you were a company acquiring another company like this, why would you do it this way where you severely damage the brand you are acquiring? The only reason I can think of is that you don’t care about the brand because a) you have a bigger brand you can wrap the services under or 2)you don’t plan to continue the service and instead just want the underlying intellectual property and patents.

From what I’m hearing OnLive employees have pretty much been left holding the bag on this one. To be fair, I’ve never been a huge OnLive fan, but it looks like a lot of people lost their jobs today and that’s not cool. I understand business, but this is really why it doesn’t pay to be loyal to a company anymore, you are much better off trying to start something on your own. It seems that companies used to think that their people were their biggest asset and now they really don’t seem to give a damn. With the economy the way it is it seems like employers take advantage of the fact that their employees don’t have a lot of options, then use them up and when a nice exit comes along where they can cash out and take millions they leave the employees floating in the wind. At this point there is no indication of who the acquiring company may be, everyone from EA to Apple has been speculated, I guess we will find out in the coming days.

If any OnLive employees read this post I would love to hear what you think about all this. I mean did the company give you any indication that something like this was about to happen? Please hit up the comments or the Facebook page and leave your thoughts, we want to hear from you.

Via: GameInformer

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Lorenzo Winfrey

Lorenzo Winfrey

Editor-In-Chief at ZoKnowsGaming
I am the Co-Ceo of DLT Digital Media. We are a company that is focused on developing new and innovative web properties in addition to developing WordPress based web sites for others. But before I was all that, I was a gamer.
Lorenzo Winfrey