HTC burned for $40 million as cloud gaming startup OnLive implodes
It’s a good thing HTC (2498) dialed back its Beats investment last month, because the $150 million it will save on that deal might help take the sting off the $40 million the company just lost on another investment. OnLive, a cloud-based gaming company that launched two years ago, just imploded. Huge layoffs swept the gaming startup late last week as the firm’s assets were acquired by a new company. According to a recent filing with the Taiwan stock exchange uncovered by IDG News, the $40 million investment HTC made in the streaming video game service will evaporate as part of that acquisition. Following a record run in 2011, HTC has hit a rough patch that recently saw $1 billion shed from its market capitalization in just two days as investors responded to the firm’s lowered third-quarter guidance. The company’s latest One-series smartphones were well-received by reviewers, but the devices have not stopped HTC from losing a great deal of ground to Samsung (005930), which is now the only profitable Android vendor among global smartphone makers.
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