HTC hit with $40 million write-off bill over OnLive restructure
The significant internal restructuring of OnLive over the weekend has affected more than just the cloud-gaming company itself. Now partners HTC have come forward, stating that they will have to write off $40 million that they had invested into the company as one of its major partners.
The £25.5 million loss was revealed in a Taiwanese stock exchange filing by HTC, stating:”Due to lack of operating cash and an inability to raise new capital, OnLive had completed asset restructuring over the weekend. HTC estimates that it will need to recognize a $40 million provision for this investment loss.”
The timing of OnLive’s problems couldn’t be any worse for HTC, who are currently experiencing their own financial difficulties. Rumours have been surrounding the mobile manufacturer, suggesting a government bail out may be on the cards, with their own CEO admitting mistakes had been made.
With OnLive’s future still up in the air following the company’s assets having been acquired into a new company, the stakes of the cloud-gaming service’s other partners may be at risk. As well as HTC, BT, Warner Brothers and AT&T all invested heavily in the service.