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.