Joystiq

OnLive's debt was $30-40 million, insolvency group reveals

Sinan Kubba — Thu, 23 Aug 2012 09:00:00 EST

It's now been revealed that OnLive's debt was somewhere between $30 million and $40 million before last week's collapse and subsequent reincarnation.

Last week, the California-based company's assets were transferred to Insolvency Services Group. Those assets were then sold on to Lauder Partners, LLC on the day OnLive ceased operations. Yesterday, ISG's CEO Joel Weinberg revealed the extent of OnLive's arrears to San Jose Mercury News.

"It was a company that was in dire straits. It only had days to live in terms of cash flow and the like," Weinberg disclosed, "Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster."

The newly acquired company will continue to run under the OnLive name, but it had to lay off at least half of its 200 employees as part of the process. It now also appears likely that investors HTC and British Telecom will write off their investments. Weinberg also revealed that he expects investors to only receive 5 to 10 cents per dollar owed.

OnLive's debt was $30-40 million, insolvency group reveals originally appeared on Joystiq on Thu, 23 Aug 2012 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

SouthPeak gets $10 million loan while losing biggest moneymaker

Ben Gilbert — Sun, 18 Jul 2010 19:30:00 EST

Filed under: Weird But True, Opinions, New In Pop Culture

Outside of looming legal battles and down year-over-year revenues, SouthPeak recently received a $10 million "asset-based line of credit" that extends until February 28, 2012, reports IndustryGamers, effectively replacing an $8 million line of credit previously secured. We're not quite sure what debtors will have to take from SouthPeak should the publisher not be able to repay the $10 million, though, as Majesco Entertainment apparently scooped up SP's biggest franchise in mid June, My Baby.

For what it's worth, SouthPeak chairman Terry Phillips said of the credit, "Securing this additional credit provides us with greater financial flexibility and presents a clear message to our investors that we are confident of our business prospects and growth opportunities over the near- and long-term." Here's hoping that Two Worlds 2 and Battle vs. Chess are enough to help the company get its feet back on the ground in the coming year.

SouthPeak gets $10 million loan while losing biggest moneymaker originally appeared on Joystiq on Sun, 18 Jul 2010 19:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Pre-teen FarmVille player racks up $1,300 in charges

Griffin McElroy — Thu, 08 Apr 2010 19:00:00 EST

No, no, no. This simply will not do. There are so, so many things in this world worth buying with money you don't technically have, that we can't sympathize with a 12-year-old boy who, according to the Guardian, ran up a £905 tab (something like $1,380) by purchasing FarmVille funny money through developer Zynga. Since the boy lives with his (unknowing) mother, the company reportedly refused to refund the money, leaving the boy's life savings and the mother's credit card account in a world of hurt.

There are a handful of burning questions at the forefront of our minds with this story, the most pressing being: What was the endgame, here, kid? Was your sizable initial investment going to be completely recouped with this season's bumper crop harvest of virtual soybeans?

Pre-teen FarmVille player racks up $1,300 in charges originally appeared on Joystiq on Thu, 08 Apr 2010 19:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

SouthPeak doubles game sales in 2009 amid dropping profits

Ben Gilbert — Thu, 15 Oct 2009 00:30:00 EST

Though SouthPeak is keen to point out that its net revenues rose from last year by $7.2 million, the company's profits for the year remain firmly in the red, with a $12.1 million posted loss for the 2009 fiscal year ending June 30. SouthPeak's loss report comes confusingly paired with a 100% increase in units sold from fiscal year 2008 (from 1.2 to 2.4 million units) -- 2009's posted $12.1 net loss gets explained away by "approximately $12.5 million invested in game development and intellectual property for future title releases," among other things.

The report also allows "$1.6 million of expenses relating to the Gamecock acquisition," hopefully some of which went to paying Gamecock debt now owed by SouthPeak -- this on top of another $4.6 million or so for "charges relating to write-downs on software values and sequel right values to certain titles." Unsurprisingly, the publisher hopes that upcoming titles Two Worlds 2 and My Baby: First Steps, as well as a "highly-anticipated sequel to Dementium," will bolster its next fiscal year. We're just hoping the games the company does sell will actually garner some profit this time around.

SouthPeak doubles game sales in 2009 amid dropping profits originally appeared on Joystiq on Thu, 15 Oct 2009 00:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Midway stalls for more time, still scrounging up cash

Jason Dobson — Fri, 16 Jan 2009 22:00:00 EST

Filed under: Business

After negotiating a small measure of breathing room last week and delaying the payback of a portion of its staggering debt, fate has again smiled on Midway. GI.biz now reports that the embattled publisher has again talked its way out of a corner, pushing back the deadline to repay the back end of the $150 million it owes to stakeholders until February 12.

We'll pause as execs take a moment to wipe the sweat from their collective brow. Still, we can't help but wonder if Midway wouldn't be waiting for shareholders to slip the noose around its neck in the first place if it had put the kind of energy into developing quality games that it has in delaying the company's financial collapse.

Midway stalls for more time, still scrounging up cash originally appeared on Joystiq on Fri, 16 Jan 2009 22:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Time extension: Midway gets extra month to pay off debts

Jason Dobson — Tue, 06 Jan 2009 12:26:00 EST

Filed under: Business

Midway has picked up a time bonus, turning back the clock somewhat on its 50-day fast track to financial doom. The troubled Mortal Kombat publisher has negotiated some breathing room for itself, extending the deadline to pay back half of its crushing $150 million in debt by another month until February 19. Of course, this still leaves $75 million to fork over to investors in a couple weeks, though Midway notes that it is currently "in discussions" to push back the repayment of this debt as well.

When things are going south as quickly as they have gone for Midway, you take your victories where you can, though unless Midway expects next month's Diesel-fueled Wheelman to drive to the front door with a bag of cash, we wouldn't stop looking under the rug for loose change just yet.

[Via Variety]

Time extension: Midway gets extra month to pay off debts originally appeared on Joystiq on Tue, 06 Jan 2009 12:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Finish him: Midway facing 50-day countdown to bankruptcy

Jason Dobson — Fri, 05 Dec 2008 11:30:00 EST

Filed under: Business

Things are looking grim for the company that once gave us Gorf, Arch Rivals and Spyhunter. The Chicago Tribune reports that Midway may default on its staggering $240 million debt, and that according to an SEC filing the one-time arcade dynamo has just 50 days to get $150 million of this back into the hands of creditors. It's money, unfortunately, that Midway just doesn't have.

The Mortal Kombat publisher has enlisted the council of financial advisory firm Lazard, though time is short and money even shorter. The urgency stems from the company's recent change in majority ownership, which allows bondholders to demand full repayment on their investments. However, with Variety reporting just a smidge over $10 million in Midway's coffers, that leaves an awful lot of candy bars to sell over the next month and a half if the company is to keep from filing bankruptcy (let alone being ripped to shreds by investors pounding on the front door).

Finish him: Midway facing 50-day countdown to bankruptcy originally appeared on Joystiq on Fri, 05 Dec 2008 11:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Midway sinks further after Redstone escape

Jason Dobson — Thu, 04 Dec 2008 13:00:00 EST

Filed under: Business

How low can you go? GI.biz reports that Midway's stock has plummeted some 40% since majority shareholder Sumner Redstone cast off his stake in the company to investor Mark Thomas on Monday and ran for the hills.

Midway's stock currently trades for around 23 cents a share, an all-time low and reason why the company continues to face delisting by the New York Stock Exchange. As Midway's dance of financial limbo persists, we can't help but look on and place bets when the troubled company's back will simply give out and snap in two.

Midway sinks further after Redstone escape originally appeared on Joystiq on Thu, 04 Dec 2008 13:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Redstone to sell Midway stake for $100K

Jason Dobson — Mon, 01 Dec 2008 09:55:00 EST

Filed under: Business

The week begins with more bad news for financially-hobbled Midway. Just days after finding itself on the business end of a delisting notice from the New York Stock Exchange, the company's majority stockholder, Sumner Redstone, is now preparing to row away from the sinking ship entirely. According to the Wall Street Journal, Redstone and his holding company, National Amusements, hope the separation will help breathe new life into the firm's suffocating $1.6 billion in debt.

Redstone is expected to ~~inflict~~ sell his 87% controlling stake in the troubled publisher to private investor Mark Thomas -- obviously someone who enjoys a good fixer-upper -- for the bargain basement price of about $100,000, or $0.0012 a share, well below Midway's previous closing price of .38 a share. The WSJ also points out that the sale is but one point in what has become a highlight reel of bad investments for Redstone, who sunk millions into Midway in hopes of the company's heroic return, only to see it do a fatality on his bank account.

Redstone to sell Midway stake for $100K originally appeared on Joystiq on Mon, 01 Dec 2008 09:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Brace yourself: Ziff Davis is $390 million in debt

Alexander Sliwinski — Thu, 16 Aug 2007 18:56:00 EST

Filed under: Business

Publisher Ziff Davis has been in trouble for a while, and now we know how bad. The publisher skipped an interest payment and is entering into negotiations regarding its $390 million debt. Ziff Davis says they are still operationally "in very good shape," but they still have debt left over from when the company "was a very different scale." The company used to employ 1,200 people, it is now down to 290 and among its many websites (including 1UP), it only has three magazines left: PC Magazine, EGM and Games for Windows. During the attempted sales of its games division it became clear buyers wanted 1UP, but had no interest in the declining magazines.

Death in the video game magazine business seems inevitable, unless you're bundled with a mega gaming retail chain's discount card. Although this shouldn't be taken as a sign that EGM and your other Ziff publication's are finished. There's obviously a reason these magazines have survived while the others died off.

[Via Evil Avatar]

Brace yourself: Ziff Davis is $390 million in debt originally appeared on Joystiq on Thu, 16 Aug 2007 18:56:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments