Report: OnLive was sold for less than $5M

According to a new report, streaming video game service OnLive was recently acquired for less than $5 million, right at $4.8 million.

The report from Mercury News claims a letter sent from Insolvency Services Group CEO Joel Weinberg states that the service was purchased for sub $5M. The letter also claims that OnLive was looking for a buyout or for a company to make a major investment for "a substantial period of time". The debts quickly accumulated forcing OnLive to liquidate assets and for Gary Lauder, a venture capitalist, to buy the remaining shares allowing OnLive to remain intact.

Here's what Weinberg had to say about the acquisition;
“Had the sale to the buyer not taken place, the assignee would have been left with inadequate capital to fund the significant costs to preserve and market OnLive’s patents and other intellectual property, thus greatly reducing expected recoveries essentially to those of a forced piecemeal auction,” he wrote.
It's hard to believe that a company as promising as OnLive was purchased for such a small amount of money, all things considering.