OnLive CEO says 'essential people' being brought back

By Steve Watts, Aug 20, 2012 7:45am PDT

In the wake of OnLive's assets sale, the newly formed company has detailed its corporate plans moving forward, and we've learned more about how the news was delivered from company CEO Steve Perlman.

"I've been a non-stop fundraising machine," CEO Steve Perlman told his staff in the announcement, according to Joystiq. "And I finally got to the point where I just could not bring in enough funding to carry this thing forward."

The company claims that almost half of the former employees were given new offers upon the transfer, and that those who weren't hired will be given offers to consult with the new company. The company had filed an "Assignment for the Benefit of Creditors," which has an assignee takes over the assets of the company so that the debts and creditors can get paid off. So far, the assignee is a mysterious venture capitalist. Perlman says he believes in the future of the company, but doesn't have the funds to bring back all 150-200 employees.

Perlman told his employees they would bring back the "essential people" on an as-needed basis, but said that most people wouldn't be coming back on-board. This stripping down to the essentials was to make up for overcompensation of scale in the first place. Perlman says they bought thousands of servers, unsure of how many they would need, and those include contracts to keep them for a length of time. "If you've got 8,000 servers and 1,600 users, how could we ever get to cash flow positive, right?" he asked.

He also said the company expanded its number of employees in the last few years, through the recession, but it contributed to the need to cut. Those who don't get invited back for full contracts will be given a consulting option.

"I'm the one that brought you here. I'm the one that ultimately made decisions," Perlman said. "And I'm the one that ultimately takes responsibility. So I am sorry, and it didn't end up exactly as we'd hoped."

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