News Summary: OnLive says it will live on

AP News
Posted: Aug 20, 2012 6:24 PM
News Summary: OnLive says it will live on

TROUBLES: Analysts say video game streaming startup OnLive was spending too much money and didn't have enough paying users.

REORGANIZE: OnLive went through a complex bankruptcy alternative. It will continue operating its service. But employee stock options and investments from outsiders became worthless.

ABOUT ONLINE: Described as a threat to companies selling traditional packaged video games when it burst onto the gaming scene in 2009, OnLive offers video games streamed over an Internet connection, similar to how Netflix offers streamed movies and TV shows.