Rumors began yesterday that OnLive, the cloud gaming platform, was being sold to some company and there will be massive layoffs in the process. Now we can confirm through the official statement from the company that indeed its assets have been acquired into a newly-formed company providing it with “substantial” financial backing. The company has confirmed that OnLive Game and Desktop services will remain operational and continue to be supported. The press release also claims a “large percentage” of OnLive staff is being hired for the new company and more will be hired over time. You can read the press release after the break.
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 additional 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.
Further speculation points to about retention of 20% of OnLive’s current staff in the new company while the rest being laid off.