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OnLive went bankrupt to wipe out employee equity – rumour

Monday, 20th 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.

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10 Comments

  1. OlderGamer

    Sad if true.

    #1 2 years ago
  2. Phoenixblight

    Thats exactly why they did it. THey had a contract for an overabundant amount of servers to only sustain 1/3 of their servers so they used this tactic to get out of those contract along with rehiring new staffers for less the cost.

    Its why the CEO bounced out after doing so.

    #2 2 years ago
  3. DSB

    If those employees accept that move, they’re idiots.

    #3 2 years ago
  4. frostquake

    Sad, but this is common practice. And @3 Sadly, in this Economy they will probably have to settle for what they can get, not like there is a huge Economic Boom going on at the moment.

    “Never Give Pigs The Ability To Feed Themselves, They will NEVER stop Eating, Until They Eat Themselves Into Oblivion!”

    #4 2 years ago
  5. Phoenixblight

    @4

    Hopefully the ones that were offered a job by MS,Sony and Apple took that job. I know I would have.

    #5 2 years ago
  6. Dragon246

    I would like to know who bought them and for how much, probably a lot less than 375m$.
    Sucks to be OnLive and its employees.

    #6 2 years ago
  7. Phoenixblight

    @6

    For all we know its the same company just under a new uniform.

    #7 2 years ago
  8. Dragon246

    @7
    I want to know about corporations and their over priced deals. They probably got a awful deal as the buyers were not even concerned that they would lose some important employees through this process.

    #8 2 years ago
  9. roadkill

    Sounds exactly like what an a**hole like Steve would have done.

    #9 2 years ago
  10. Kabby

    Shady company.

    #10 2 years ago

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