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Letter reveals $18.7m in outstanding debts

OnLive assets were sold for just $4.8 million

After analysts had previously discussed the business being worth as much as $1.8 billion, Venture Capitalist acquired OnLive for a mere $4.8 million (£3m).

The details of the acquisition were revealed by Mercury News, after obtaining a letter from Insolvency Services Group, the firm who are handling OnLive’s ‘Assignment for the Benefit of Creditors’ status – a bankruptcy-like process.

The letter reveals that OnLive had at least $18.7 million in outstanding debts, not including money it owed in the future or leases and other contractual obligations.

"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," wrote Joel Weinberg, president of Insolvency Services Group.

OnLive was the pioneer of on demand and cloud gaming services, which allowed gamers to play the latest releases on any device via the internet.

Back in August, investor Gary Lauder announced that he was to take the reigns as OnLive’s company chairman after founder Steve Perlman decided to leave his post as both CEO and president.

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