Updated: Onlive Officially Confirms Layoffs, Dissolution
UPDATE 5:50 PM: After a full day of denials and dueling rumors, OnLive has finally issued an official statement (via The Verge):
We can now confirm that the assets of OnLive, Inc. have been acquired into a newly-formed company and is backed by substantial funding, and which will continue to operate the OnLive Game and Desktop services, as well as support all of OnLive’s apps and devices, as well as game, productivity and enterprise partnerships. The new company is hiring a large percentage of OnLive, Inc.’s staff across all departments and plans to continue to hire substantially more people, including additional OnLive employees. All previously announced products and services, including those in the works, will continue and there is no expected interruption of any OnLive services.
We apologize that we were unable to comment on this transaction until it completed, and were limited to reporting on news related to OnLive’s businesses. Now that the transaction is complete, we are able to make this statement.
Just to make it clear what happened, onLive bosses secured purchase of “the assets” on OnLive, then fired everyone. OnLive was then disbanded. From the assets of OnLive, they’re forming a totally new company that wll be legally distinct from OnLive. They will be rehiring old OnLive staff to work for this new company. Those former-future employees will be treated as new hires. And yes, any of them who owned shares in OnLive were just royally screwed out of their fair share of the profits from the sale of OnLive, and threatened with destitution in the process.
So will the ‘new’ OnLive go the full mile, and force new old OnLive staff to apply and interview for their new old jobs? With they start their new old employees at entry level rates? Will they deny benefits? We will be continuing to follow this story as it unfolds.
Original post continues below.
This story is so potentially damning we decided it warranted a new news post. Tech Cruch has been informed via their own source that the startling apparent collapse of OnLive which occurred earlier today when the company laid off almost all employees, was deliberate.
I said apparent, because according to their source, it wasn’t due to financial meltdown; Instead, after years of rebuffing all potential suitors, CEO Steve Perlman decided to sell the company to an interested third party. Said third party, so says Tech Crunch, wanted all of OnLive’s assets, including their patents, IP and branding, intending to keep the company running. Today’s layoffs – still reportedly almost everyone in the company – were enacted for the sole purpose of screwing employees who owned a piece of the company out of their share of any proceeds from the sale of OnLive.
Our source tells us… OnLive management cleaned house today, reportedly firing nearly the entire staff, and we hear it was done just to reduce the company’s liability, thus reducing employee equity to practically zero.
This news needed conflict with the rumors of bankruptcy proceedings. Such proceedings could still be under way as a means of protecting company assets in advance of their sale. But it certainly seems to suggest very awful things afoot. This is on top of news that employees were let go without severance of any kind. As the news rolls in, the end of OnLive as we now it appears to be one of the meanest, cruelest examples of naked corporate greed in recent memory. If true, it should give anyone interested in using OnLive pause before ever letting another dime change hands.
It should be stated that we do not have all the facts yet. It’s entirely possible this is simply misinformation from an angry ex employee. We will be consulting our source shortly, and adding to this new development as information is provided to us.