HTC loses $40 million in OnLive investment
updated 06:45 am EDT, Mon August 20, 2012
HTC one of several prominent debtors hit by OnLive restructure
HTC is one of a number of OnLive debtors caught up in its Assignment for the Benefit of Creditors (ABC) restructure. PC World reports that the embattled Taiwanese handset manufacturer has informed the Taiwan Stock Exchange of a $40 million loss incurred following the dramatic events that unfolded over the past week at the online streaming games service. Although the restructure has been architected in a way designed to give initial investors some return on their investment, HTC appears to be taking a pessimistic view on the matter.
Other investors in OnLive include Warner Bros., Autodesk, Maverick Capital, AT&T and British Telecom, however, there have been no statements from those companies on the events that have transpired at OnLive's headquarters. OnLive suddenly sacked most of its staff, before rehiring around half of them after being purchased by a new owner. During this time, its servers continued to operate without service disruptions. OnLive is said to have burnt through its venture capital after undertaking a massive expansion of its servers without the corresponding increase in clientele to help fund the fit out.
For HTC, it is yet another blow in recent months following its decision to sell back half its stake in Beats Audio after its gamble that Beats Audio would offer an appealing point of differentiation proved a failure. It is also coming off the back of dramatic slumps in sales and in profit as its Android lineup has become largely overlooked by consumers who have been attracted by the marketing muscle of Samsung.
