OnLive went bankrupt to wipe out employee equity – rumour

Monday, 20 August 2012 00:57 GMT By Brenna Hillier

TechCrunch has a possible explanation for why OnLive declared ABC bankruptcy to reform under its new owner rather than a straight-forward acquisition. According to the site’s sources, by effectively laying-off its entire workforce – although many will be rehired – the company has nixed any equity entitlements its staffers held. This would make OnLive a much more attractive purchase thanks to a substantial reduction in price.

Thanks, Kotaku.