When it comes to OnLive, today has been a rollercoaster. In our previous coverage, we tried to keep you up to date throughout the reports of a shut down, layoffs, a bankruptcy, and a corporate denial. Turns out there was a lot of truth mixed in a lot of misinterpretations. So here’s the deal, OnLive’s assets are being sold.
What will this sale mean? The legal entity of OnLive will be dissolved through an expedited type of bankruptcy called Assignment for the Benefit of Creditors and a newly formed company, free of debt and commitments, will acquire ALL of OnLive’s assets. According to their response to Engadget, they claim to have substantial funding. This is not an uncommon occurrence. GM and Chrysler, among others, did something very similar.
Since the OnLive corporate entity we know is technically ceasing business, they are also technically laying off staff. However, the new company has promised to hire a good portion of the former OnLive employees. Any agreements or stock they had with the old OnLive will be null and void.
Lastly, what will this mean for the customer? Hopefully, not much. If the process if quick enough and the staff agrees to return, it should be a relatively painless transition. It would not be surprising if the new company even acquired the OnLive name. Of course, if there are more twists and turns in this story, you’ll hear from us again.