OnLive is being bought out by an unknown third party

So as the dust settles through a flurry of rumors and half details earlier this afternoon, it seems as though some sense is now coming out of the whole OnLive fiasco. Rumors from OnLive shutting down today and entire staff lay-offs, Bankruptcy filing and pretty much everything else you can stuff in there have been floating around.

Now, as things settle, reports are coming out that seem to explain everything. The director of communication over at OnLive was dodging answers about lay-offs and employee matters, simply stating no comment to all inquiries. However, they assured everyone that OnLive was not shutting down or closing it’s doors. So why all the fuss?

Here is what is apparently happening, about 50% of the staff has been laid off while the rest have received letters of job offers from an unknown company. This company is also in the midst of buying out OnLive who was apparently in some financial trouble, filing an ABC Bankruptcy filing (a.k.a Assignment for the Benefit of Creditors) which isn’t really technically bankruptcy but more of a protection move against creditors.

The meeting that happened this morning at OnLive was confirmed to have happened and indeed CEO Steve Perlmen did state that OnLive, as it is today, will cease to exist and a new company will be formed out of what remains of the company. This means that whatever company is buying OnLive will more than likely re-brand it. However, service is supposed to remain going even through all of this, at least for now.

At least we now have an idea of what is going on after the mess earlier this afternoon. This is all still supposed to be taken with a grain of salt but it does make more sense. Additional information is also available over on TheVerge.

Website Referenced: Engadget

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