OnLive spun off into new company, service 'will continue to operate'

Cloud streaming business OnLive confirmed its sale and subsequent restructuring "into a newly formed company" this afternoon, and said both its game and desktop services "will continue to operate." That includes "all of OnLive's apps and devices."

According to the statement, OnLive, Inc. is now a new company "backed by substantial funding" – enough funding to hire "a large percentage of OnLive, Inc.'s staff across all departments." Furthermore, there are plans to "hire substantially more people, including additional OnLive employees." The statement also said that its various plans for the future, including "products and services" that are still in development, will be unaffected by the spin off.

The statement doesn't address how many employees were affected by today's news. Reports from former employees put the layoff numbers at 50 percent or more of OnLive's total staff.

When asked whether CEO Steve Perlman was still heading the company, an OnLive rep confirmed that the company's management team "remains intact."