AAA Game over for OnLive founder

Game over for OnLive founder

Cloud-based gaming company OnLive has announced a new chief executive following a sudden restructuring earlier this month.

OnLive’s former operations head Charlie Jablonki will become the firm’s new chief operating officer and acting interim CEO while the company’s new owner Gary Lauder, managing partner of venture firm Lauder Partners, prepares to take the reins as CEO.

Founder and former CEO Steve Perlman has exited the company, despite reassuring staff that he will remain as CEO a few days ago.

OnLive took former investors off-guard earlier in August when it announced that it had restructured and sold its assets to a new company, also called OnLive, funded by Lauder Partners. Previous shareholders were wiped out and the company’s staff were made redundant.

Smartphone maker HTC admitted it was on the hook for $40m. British Telecom also said that it was “highly likely” the phone operator would have to write off its 2.6 percent stake in OnLive. Other investors included phone operators AT&T, and Belgacom Group, filmmaker Warner Brothers, software provider Autodesk, network equipment provider Juniper Networks, and venture firm Maverick Capital. Lauder Partners was also a previous backer.

According to gaming news provider Joystiq, OnLive had amassed debts of over $30m. The company previously raised around $100m from three corporate venturing units in the past two years at a $1bn valuation.

“The new OnLive is emerging with greater financial security and a brighter outlook on the future. OnLive is now positioned to execute against longer-term projects with our breakthrough technology, products and services,” said Gary Lauder.

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