HTC to take $40 million loss due to OnLive changes

The fallout from the changes at the OnLive streaming PC game service continue to be felt. After rumors of a shutdown hit on Friday, the company sent out a brief statement saying that it had been acquired by an unnamed company and that the service would continue with no interruptions.

Now it looks like at least one company is going to lose quite a bit of money from the changes at OnLive. reports that smartphone maker HTC, which had made a $40 million investment in OnLive in February 2011, revealed in a stock regulation filing today that it would lose that investment. HTC said that the loss was due to OnLive's "lack of operating cash and an inability to raise new capital."

Meanwhile, OnLive itself sent out a statement of its own late on Sunday. Joystiq reports that the mysterious person who has saved OnLive from a complete shutdown is venture capitalist Gary Lauder of Lauder Partners. The company also said that "almost half" of OnLive's previous employees are being hired by the new company, which will still use the OnLive name.

The statement also said that OnLive has 1.5 million "active" subscribers. However, the company has not commented on rumors that it only had an average of 1,800 concurrent users for the service.

Source: | Image via OnLive

Report a problem with article
Next Article

Nook eReaders to expand to the UK in October

Previous Article

Review: Microsoft Wedge Mouse

17 Comments - Add comment