HTC Loses $40M on OnLive Cloud Gaming Deal

by InvestorPlace Staff | August 20, 2012 10:34 am

despair dont look now 630 300x200 HTC Loses $40M on OnLive Cloud Gaming Deal[1]It’s been tough for HTC. Over the past few years, the company has lagged against rivals like Samsung and Apple (NASDAQ:AAPL[2]). Unfortunately, over the weekend HTC announced some more bad news: The company had to write off[3] a $40 million investment in OnLive, which is cloud-based game platform that closed its doors on Friday[4].

HTC made the investment back in February 2011, and the goal was to get access to unique content for its smartphones. Yet OnLive could get little traction and has had to lay off its staff. The company actually agreed to sell out to an undisclosed buyer (although it’s unclear why this wiped out HTC’s investment).

Despite all this, HTC keeps making deals. In fact, the latest announcement came today. The company agreed to invest $35.4 million in Magnet Systems, which is an enterprise services provider.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/07/despair-dont-look-now-630.jpg
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. write off: http://news.cnet.com/8301-1035_3-57496221-94/htc-to-take-$40-million-loss-from-onlive-investment/
  4. closed its doors on Friday: http://money.cnn.com/2012/08/18/technology/onlive/index.html

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