HTC Loses $40 Million from OnLive Restructuring

While employees of OnLive felt the most immediate sting on Friday when the company announced mass staff layoffs, other entities involved with the cloud-based game streaming service felt their investments of time and money disappear like a building at a David Copperfield show in Vegas. Too bad that it wasn't an illusion.

One such entity is mobile phone maker HTC, who invested $40 million in the venture. The company announced the $40 million investment loss in a Taiwan Stock Exchange filing, disclosing that OnLive completed an asset restructuring over the weekend due to a "lack of operating cash and an inability to raise new capital."

HTC made the investment in OnLive in February of 2011. Other companies that invested in OnLive include Warner Bros., Autodesk, Maverick Capital, AT&T, British Telecom, and others.

Source: PC World


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