HTC has confirmed that it expects to write off $40 million (£22.5m) following the internal restructuring at the OnLive game streaming company.
Taiwanese smartphone maker HTC invested in OnLive in February and was also one of its major partners. The company had hoped that the move would strengthen its gaming capabilities and help it meet demand for games on mobile devices.
However, in a filing to the Taiwanese stock exchange today (August 20), HTC said: "Due to lack of operating cash and an inability to raise new capital, OnLive had completed asset restructuring over the weekend.
"HTC estimates that it will need to recognise a $40 million provision for this investment loss."