OnLive assets sold for $4.8 million

Streaming game service OnLive had some pretty rough times over the summer, but it looks like the company's narrow evasion of bankruptcy was even more razor-thin than suspected. The Verge reports that OnLive's assets were sold off to investor Gary Lauder for just $4.8 million in August.

For reference, news emerged in July that Sony purchased competitor Gaikai for $380 million. Why would OnLive's management let the whole kit and kaboodle go for so little? The company reportedly had $18.7 million in debt, and outside analysts found the company would be worth more as one purchase than being sold off piecemeal in auctions.

OnLive laid off half of its employees in August, with founder Steve Perlman exiting the company after the financial maneuver to resell the assets to Lauder and maintain the service. Its creditors could still try to force bankruptcy for the company if they believe it was worth more than the $4.8 million sticker price.

Connor Sheridan

I got a BA in journalism from Central Michigan University - though the best education I received there was from CM Life, its student-run newspaper. Long before that, I started pursuing my degree in video games by bugging my older brother to let me play Zelda on the Super Nintendo. I've previously been a news intern for GameSpot, a news writer for CVG, and now I'm a staff writer here at GamesRadar.