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OnLive assets were sold for just $4.8m

Firm had at least $19 million in outstanding debts

Venture capitalist Gary Lauder paid just $4.8 million (£3m) for OnLive's assets after the company went into insolvency over the summer.

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That's according to a letter obtained by MercuryNews, written by Joel Weinberg, CEO of Insolvency Services Group, which was handling OnLive's sale.

The cloud gaming firm had at least $18.7 million ($11.7m) in outstanding debts when it went into insolvency in mid-August, and the letter indicates that OnLive's creditors will end up getting no more than around a quarter of the money they were owed.

When it ran into trouble OnLive opted to initiate bankruptcy alternative measures which effectively closed the former company and established a new one under the same name.

Last week OnLive UK director Bruce Grove said the firm had a clear recovery strategy for the coming year.

"We have a road map for how soon we start with certain things, what the focus is, what we're going to be doing, what the next twelve months will be," he said. "And that's a big shift for the company: Having a 12-month plan. That's something that's going to show how we'll build this into a long-term sustainable business.

"In the past we've been very focused on OnLive being the driving force of wherever we've gone. Now, it's much more about engagement with our partners. That's going to be the way we reach the new customer market."

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