HTC loses US$40 million from OnLive restructuring

OnLive has been forced to restructure after nearly going bankrupt

Taiwanese smartphone maker HTC said on Monday it will have to book a US$40 million loss from its investment in U.S. cloud gaming service OnLive, which is restructuring after nearly going bankrupt.

HTC announced the investment loss in a Taiwan Stock Exchange filing, stating that OnLive completed an asset restructuring during this past weekend because of a "lack of operating cash and an inability to raise new capital." The company declined to elaborate on its investment.

HTC made its $40 million investment in OnLive in February of last year, in what was seen as a move to eventually bring more online games to its company smartphones. OnLive, which streams games over the Internet through PCs, also started hosting games for Android tablets and smartphones at the end of 2011.

The U.S.-based company, however, has been forced to restructure because of the high infrastructure costs associated with running its gaming service, resulting in OnLive failing to make a profit. On Friday, the company said it had been acquired by an unnamed new owner, allowing OnLive to continue to operate its services. But as part of the restructuring, an unknown number of the company's employees have been laid off.

Other backers of OnLive include Warners Bros., Autodesk, Maverick Capital, AT&T and British Telecom among others.

HTC's loss comes a month after the smartphone vendor reworked another investment it had made in U.S.-based Beats Electronics, a provider of headphones equipment.

HTC had originally bought a majority stake in Beats at $300 million, in order to improve the audio systems on its handsets. But almost a year after the deal, HTC said in July it would sell back half its stake in the company, retaining a 25 percent ownership.

The Taiwanese smartphone maker said the stake sell back will give Beats greater flexibility to expand its brand globally. But analysts have said the investment in Beats likely fell short of HTC's expectations, with Beats' audio technology not enough to give the smartphone maker an edge over its rivals

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?