Troubled cloud gaming company OnLive was sold for just $4.8 million earlier this year as it went through the insolvency process, a report from San Jose Mercury News states.
OnLive sold all of its assets
to an unnamed company in August, letting go of all of its staff in the process, although the exact details of the deal were not divulged.
Now a new report states that
venture capitalist Gary Lauder paid $4.8 million for OnLive just before the liquidation of the company was set to happen.
Joel Weinberg, CEO of Insolvency Services Group, the company named as the assignee in the insolvency, noted that the amount was the best that OnLive could have hoped for. Weinberg's lawyer confirmed with Mercury News the authenticity of the detailed letter.
Notably, the letter also states that OnLive had at least $18.7 million in outstanding debts before the sale, meaning that the company's creditors will now receive no more than around 26 cents for each dollar that they were owed.
In comparison, Sony paid approximately $380 million
for rival cloud gaming company Gaikai earlier this year, with the aim to deliver cloud gaming and other streaming content on "a variety of internet-connected devices."