HTC takes $40m hit on OnLive investment after restructure

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."

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Godmars2902784d ago

"Yesh" is suppose to be a good sound?

And considering what's useally reported as a loose, $40m isn't that much. Not that a company like HTC can probably afford to take such a hit.

yesmynameissumo2784d ago (Edited 2784d ago )

HTC (like many, many other companies) aren't going to go near the new Onlive. They were fools for turning down the hundreds of millions offered a few months ago for purchase.

EDIT: None of the shares of the old Onlive are worth anything. Investors, like HTC, have been burned. Nothing indicates there will be any changes (besides ownership) at Onlive. So if it failed once, why would any company risk backing it again?

JBSleek2784d ago

Not necessarily because if they can get their stuff together then it makes sense. For example Mark could of sold Facebook or keep it go through the motions and expand. Sometimes it makes sense to go through the process and keep going.

sashimi2784d ago (Edited 2784d ago )

So this is why the Taiwan's minister of economic affairs urged their citizens to support HTC more... and the fact that they haven't done so well in the past few months.

OC_MurphysLaw2784d ago

Sucks for HTC but I think they are doing pretty well right now with their android line of phones. I was wondering / hoping we might see some kind of hint as to who is operating the new company that was Onlive. Is it just a financial institution holding the keys looking to sell it off? Or is it an actual player in the industry?

Chrono2784d ago

I thought HTC is friends with Sony (Sony is going to let them make PlayStation Certified phones). This is a direct competition against Sony's Gaikai.

JBSleek2784d ago

Gaikai doesn't compete with Onlive as much as it used to.

Onlive is almost strictly third party and more games has a far better reach than Gaikai which now going to be only on Sony Certified devices and is most likely to be first party old games.

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