Remember two days back when HTC invested $40 million in OnLive? Well, since then analysts have been trying to figure out what the overall value of the company might be. The results might surprise you.
According to Justin Byers at VCExpertsan expert at examining private company filings OnLive authorized the issuance of 8 million shares of Series E preferred stock at $7.50 a share (that price is the same as what HTC said it paid). The total authorized shares are now 358.4 million, while the total number of common shares authorized are 240 million. If all of the authorized common shares were issued, then the value comes out to $1. 8 billion."We are not saying that is the valuation," Byers said. "We are saying it could be that high." - SourceSource
For comparison, EA was valued at 5.24B in October 2010.
That means OnLive is already valued at one-third the price of one of the largest software publishers in the world.
Tell me how OnLive is going to fail when so many people in power love the idea?
Source:
http://venturebeat.com/2011/02/09/is-cloud-gaming-service-onlive-really-worth-1-8b-poll/
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