Over the weekend, a story broke around the game streaming application OnLive. The company was reported to have gone bust, with all of its staff laid off and plenty of uncertainty about where its customers would be left. Now it seems as though things have moved swiftly and customers will, hopefully, be largely unaffected.
OnLive’s board of directors filed for an Assignment for the Benefit of Creditors at the weekend. This essentially devalued all shares and dissolved the company. Apparently, almost half the staff were re-hired, on their previous salaries, by a new company formed by the former management of OnLive. Those not offered jobs were offered consultancy roles and stock options with the new company. The former CEO and founder of OnLive, Steve Perlman, was not given any compensation or awarded any stock in the new company.
The new company has acquired all of OnLive’s assets and patents, as well as retaining the name. The company has issued a statement to say that all of its existing partnerships and services will continue without interruption. In short, existing customers shouldn’t notice any changes whatsoever to the service.