BT prepared to write off OnLive investment

UK telephone and internet provider BT has said that it believes its 2.6 per cent stake in troubled cloud gaming firm OnLive will probably be written off.

OnLive folded at the weekend only to instantly emerge again under a new owner, using the same assets, technology and IP. However, over half of it staff lost their jobs in the process.

As well as the human cost, the process OnLive underwent allowed it to write off all of its debts, leaving investors without a penny as the company carries on as it did before.

One investor, UK firm BT, has told TechRadar that it suspects the 2.6 per cent stake it acquired from OnLive in May 2010 will likely be lost.

"We cannot comment on speculation about the future of OnLive, but we are keeping a close eye on developments,” a spokesperson explained. "Questions should be directed to the company in question. BT customers who are customers of OnLive will continue to be able to access the service.

"In any event, the 2.6 per cent shareholding in OnLive does not represent a significant investment for BT as a whole. We consider it highly likely that we’ll have to write off our investment."

Smartphone manufacturer HTC has already written off the $40m investment it had made in the cloud gaming company.