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OnLive CEO Steve Perlman to Stay On at Company

By - Source: OnLive Fans | B 8 comments

Perlman to continue as chief of company.

OnLive has had a really rough week. Things kicked off last Friday with rumors that the company was letting its entire staff go and shutting down. OnLive denied rumors that it was shutting down, but on Sunday revealed a restructuring plan based around its decision to file for "Assignment for the Benefit of Creditors." However, it seems CEO Steve Perlman will remain at the helm.

OnLive said Sunday that its assets were acquired by a newly formed company on August 17th. This company will continue to operate under the OnLive name and the OnLive Game and Desktop Services, all OnLive Devices and Apps, as well as all OnLive partnerships, are expected to continue without interruption. While "Assignment for the Benefit of Creditors" meant OnLive couldn't transfer staff to the new company, half of the laid-off OnLive staff were given employment offers by the new company. They will join CEO Steve Perlman at the new company.

OnLive yesterday revealed to OnLive Fans that Perlman would retain his role as CEO of the newly formed OnLive.

"Steve continues as CEO and is currently concentrating on the transition; once this is complete, he’ll be very focused on our next product releases and the vision," OnLive said in a statement to OnLive Fans. "There will be changes to the organization both with old and new OnLive staff that will be bringing new features and games to the service. There will be more announcements — both large and small, such as the arrival of the Vizio CoStar and the Ouya Kicktarter project, and stay tuned for major announcements coming soon."

The company also mentioned a new investor, and reiterated that there will be 'complete continuity' for users.

"OnLive has been up and running 24/7 since launch, and we absolutely plan to keep it that way." the company said.

Earlier this week it emerged that OnLive owed $30 million to $40 million to various creditors. Joel Weinberg, CEO of Insolvency Services Group, the company named as Assignee on OnLive's "Assignment for the Benefit of Creditors," said that between the assets sold and the deposits and other nonoperating assets retained by ISG, they expect to be able to pay credits 5 or 10 cents on each dollar owed.

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  • 9 Hide
    chomlee , August 24, 2012 2:55 PM
    Quote:
    The company also mentioned a new investor


    Based on their track record, who in their right mind would invest in a company that doesn't have a probelm from walking away from the stockholders?
  • 5 Hide
    Vorador2 , August 24, 2012 3:27 PM
    Keeping a CEO in a company that was unable to make a profit and just barely escaped bankruptcy surely will make investing in that company trustworthy, amirite?

  • 7 Hide
    g00fysmiley , August 24, 2012 3:49 PM
    so while those who were workign there got laid off or new positions at reduced pay hte guy who crashed the ship in the first place gets a new gig at the helm of the new ship probably still making millions... yep it is a fair world
  • 3 Hide
    teh_chem , August 24, 2012 4:36 PM
    "OnLive has had a really rough week."

    Really? You call basically (and technically legally) defrauding investors, keeping their money and having zero obligations to honoring their stocks that they were promised when they decided to support your technology, and subsequently walking away from an in-debt situation debt free a rough week? I call it the exact opposite.

    I think OL as it is (er, was) sucked for good gaming experience. But I also had high hopes that they'd improve things. It's really disheartening to see what they did, and know that you really can't trust them at their word.
  • 1 Hide
    theconsolegamer , August 24, 2012 4:38 PM
    I just want Cloud gaming to faking die. DIE ONLIVE DIE!!!
  • -2 Hide
    Pinhedd , August 24, 2012 4:57 PM
    Vorador2Keeping a CEO in a company that was unable to make a profit and just barely escaped bankruptcy surely will make investing in that company trustworthy, amirite?


    They didn't "escape bankruptcy", they went bankrupt. Instead of filing for bankruptcy and going through the courts they filed for ABC which allowed them to be absorbed into another company and continue operations. All the shareholders lost their investment and the creditors will get a partial payout from the sale to the new company.
  • 3 Hide
    rad666 , August 24, 2012 6:52 PM
    It's always interesting how CEOs who run companies into the ground are never the ones who end up loosing their job, unlike the now unemployed half of OnLives workforce...
  • 0 Hide
    alidan , August 26, 2012 6:02 AM
    Vorador2Keeping a CEO in a company that was unable to make a profit and just barely escaped bankruptcy surely will make investing in that company trustworthy, amirite?


    ever hear of failing upwards... only in the ceo range of big business can that word combination happen.

    g00fysmileyso while those who were workign there got laid off or new positions at reduced pay hte guy who crashed the ship in the first place gets a new gig at the helm of the new ship probably still making millions... yep it is a fair world


    dont forget, he kept stock options and such locked, which he could have unlocked, but the people who worked there were royally screwed over... hard.