50 per cent of staff laid off as former investor takes full control
Investment group Lauder Partners is the new owner of cloud gaming service OnLive.
The cloud streaming outfit was acquired last Friday, amidst confusion over whether the company had been shut down.
Instead the firm was acquired by Lauder Partners, which had been an original investor in OnLive in 2009.
50 per cent of employees at the company have been retained, or “re-hired”, whilst the other half have been let go.
Laid off staff were described in a press release as “non-hired”, whilst it was confirmed that all staff have lost shares in the company, as old stock is now considered worthless.
Despite sacking half of its staff, OnLive is looking to hire more employees.
All OnLive assets, including technology, patents and trademarks have been transferred to the new company.
The company claimed that former CEO Steve Perlman received no compensation or stock in the new firm as part of the transaction.
It is believed the formation of a new company and restructuring at OnLive was made to wipe out the firm's debts and liabilities, in effect starting over.
“OnLive, Inc.’s board of directors, faced with difficult financial decisions for OnLive, Inc., determined that the best course of action was a restructuring under an 'Assignment for the Benefit of Creditors’," read the statement.
“The assignee of the company’s assets then sold all of OnLive, Inc.’s assets (including its technology, intellectual property, etc.) to the new company.
"Unfortunately, neither OnLive, Inc. shares nor OnLive staff could transfer under this type of transaction, but almost half of OnLive’s staff were given employment offers by the new company at their current salaries immediately upon the transfer, and the non-hired staff will be given offers to do consulting in return for options in the new company.
“Upon closing additional funding, the company plans to hire more staff, both former OnLive employees as well as new employees.”