OnLive's debt was sitting around the $30 million and $40 million mark before it closed down, and transferred its assets to Insolvency Services Group.
The firm's assets were subsequently sold to Lauder Partners, LLC.
The groups's CEO Joel Weinberg told San Jose Mercury News OnLive had to do something "mmediately or there would have been a hard shutdown, which would have been a disaster."
Yesterday, it was reported investors in the company would likely have to write off write investments, which Weinberg said would possibly only provide 5 to 10 cents per dollar.
Today, it was revealed that CEO and founder Steve Perlman would remain at the firm where he will be "concentrating on the transition."
"Once this is complete, he’ll be very focused on our next product releases and the vision," reads a statement posted via 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 Kickstarter project, and stay tuned for major announcements coming soon."