A statement released by embattled game streaming service OnLive reveals some details around the company’s sale and restructure.
The company's new investor is Lauder Partners, who paid an undisclosed sum for OnLive's assets via an Assignment for the Benefit of Creditors—essentially an alternative to bankruptcy.
According to the statement, OnLive was "faced with difficult financial decisions" and was forced to lose its shares and staff as these could not be transferred under the ABC deal.
However, almost half of those who lost jobs had been offered employment at the new company while the rest of the former staff would be offered consulting work, it said.
The company planned to rehire more staff once additional funding had been secured.
"The asset acquisition, although a heartbreaking transition for everyone involved with OnLive, allows the company's core innovation and ongoing offerings to survive and continue to evolve," the statement said.
OnLive founder Steve Perlman did not receive any stock or compensation from the transaction.
Following OnLive’s sale, smartphone maker HTC announced to the Taiwan Stock Exchange that it would lose the US$40 million (AU$38.3 million) investment it made in OnLive last year.