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HTC Loses Millions In ‘Restructuring’

HTC loses Owing to its investment in cloud gaming service, HTC will have a loss of $40 million. OnLive is the company’s cloud gaming service. It is specially recognized for offering an on-demand gaming platform through cloud. The platform allows computer quality games to be offered to other devices like smartphones and tablets. In February 2011, HTC bought into OnLive. Shortly after their key competitor, Gaikai, was bought by Sony, OnLive applied for ‘asset restructuring’.

A statement from HTC read that due to incapacity to raise new capital and lack of operating cash, OnLive had finished asset restructuring during the weekend. The statement added that HTC would have to recognize a $40 million provision due to this investment loss. The restructuring is considered to be contentious since it ruined the equity kept in the company by investors and long-serving employees. OnLive was not the only bad investment made by HTC. In 2011, the company invested $300 million into Beats Electronics and sold half of that stake mid this year.

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