HTC Loses $40M Due To OnLive Restructuring
Smartphone manufacturing company HTC will see a $40 million loss due to their investment in U.S. cloud gaming company OnLive. OnLive is currently in the process of restructuring after almost going bankrupt. HTC recently completed an asset restructuring this past weekend because of a “lack of operating cash and an inability to raise new capital.”
HTC made the $40 million investment in OnLive in February 2011. OnLive is a service that streams games over the Internet through PCs and hosts games for Android tablets. However OnLive was hit with high infrastructure costs when running their service so they struggled to make a profit. Other OnLive investors include Warner Brothers, Autodesk, Maverick Capital, AT&T, British Telecom, etc.
HTC bought a majority of stake in Beats Audio worth around $300 million in August 2011, but sold back half of its stake in the company. Now HTC owns 25% of Beats Audio.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry