Taiwan's HTC Corp. said Monday it expects to book an investment loss of US$40 million on its stake in the U.S. based cloud gaming service provider OnLive Inc.
"Due to a lack of operating cash and an inability to raise new capital, OnLive applied over the weekend for asset restructuring," HTC said in a filing with the Taiwan Stock Exchange.
Onlive hasn't managed to raise new funds to meet its operational needs and applied for asset restructuring over the weekend, HTC said. The investment loss equals the amount HTC paid for the stake back in February 2011. HTC hasn't disclosed its stake size in Onlive.
News of the loss dragged down HTC shares in Taipei 3.8% to 240.50 New Taiwan dollars (US$8.01), while the benchmark Taiex was down 0.4%.
HTC, a smartphone maker based in Taoyuan, invested US$40 million in OnLive in February 2011 with the aim of attracting more consumers by offering a wider range of services.