Remember when OnLive almost went under, and then wound up under venture capitalist group Lauder Partners? This was all back in August, and recently, we learned that Lauder purchased OnLive and all its assets for just $4.8 million.
The number is backed by a letter to OnLive's creditors, confirming the low asking price, which may be attributed to the company's $18.7 million debt and the little issue with having absolutely no available funds. As a result, Lauder was able to pick up all of OnLive's assets, intellectual property, and the "OnLive" name for what must've seemed like a more than fair deal.
According to OnLive assignee Insolvency Services Group, the surprisingly low figure was an accurate assessment:
"The Assignee concluded, in light of OnLive utilizing all of its remaining cash on hand to satisfy its final payroll obligations, that had the sale to the Buyer not taken place, the Assignee would have been left with inadequate capital to fund the significant costs to preserve and market OnLive’s patents and other intellectual property, thus greatly reducing expected recoveries essentially to those of a forced piecemeal auction."
To us, that sure sounds like a lot, but for a little perspective, consider their rival Gaikai. The cloud service went to Sony for a whopping $380 million, which completely shames the figure OnLive carried.