Posted on August 20, 2012 AT 11:39am
In a short span of days, rumors of OnLive shutting down and canceling all their video game streaming services have been replaced by official word that the company is actually restructuring. All that remains is the identity of the investor who provided the bail out.
According to Joystiq, OnLive’s new corporate owner is Lauder Partners, LLC—a venture capital firm headed up by tech industry veteran investor Gary Lauder:
OnLive representatives announced this morning that Lauder Partners’ Gary Lauder is the “very accomplished and well known venture capitalist” that’s helping bail out the cloud streaming service. CEO Steve Perlman spoke of Lauder in vague terms during the company’s final meeting late last week.
Interestingly enough, what was said to a bankruptcy is actually just looking like a total corporate shift, as 50 percent of OnLive’s original employees are going to be staying with the new company.
For all intents and purposes, OnLive will continue to function as the same service: no name change, no price increases, and few service interruptions, which is good news for its customers. However, the other 50 of the staff that was fired seem to have gotten the worse end of the deal possible.
Not only did many former-employees receive no form of severance pay or extended benefits, but higher-rank staf apparently received ”reduced compensation” to balance out layoffs. Considering OnLive’s financial troubles, that’s a tad unsightly.
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