When venture capitalist group Lauder Partners, LLC purchased and reformed
OnLive back in August, it did so for $4.8 million, according to a letter to OnLive's creditors obtained by Polygon
and the San Jose Mercury News
. The company's blue-light special asking price was due in part to its $18.7 million in debt, in addition to the fact that the last of its available cash had already been allocated to fulfill payroll obligations.
Granted, $4.8 million is still more money than we'll ever see in our entire lives, but it seems a bit paltry when compared with Sony's $380 million acquisition
of Gaikai. Under the circumstances, however, this was as good as it was going to get for OnLive.
"Had the sale to the buyer not taken place, the assignee would have been left with inadequate capital to fund the significant costs to preserve and market OnLive's patents and other intellectual property, thus greatly reducing expected recoveries essentially to those of a forced piecemeal auction," says Insolvency Services Group CEO Joel Weinberg in the letter to OnLive's creditors.
OnLive's creditors will receive around $0.26 for every dollar originally owed, according to the letter.