Did OnLive Just Die? > Sounds like they are done

OnLive will continue to operate its services during the transition and the new company is backed “by substantial funding,” said a spokeswoman for Steve Perlman, the chief executive of OnLive.

“We can now confirm that the assets of OnLive, Inc. have been acquired into a newly formed company and is backed by substantial funding, and which will continue to operate the OnLive Game and Desktop services, as well as support all of OnLive’s apps and devices, as well as game, productivity and enterprise partnerships,” the company said in a statement. “The new company is hiring a large percentage of OnLive, Inc.’s staff across all departments and plans to continue to hire substantially more people, including additional OnLive employees. All previously announced products and services, including those in the works, will continue and there is no expected interruption of any OnLive services

Translation :
We had a lot of debt, company was too expensive to run so we closed the doors, let the debt default and formed a new company to use everything that was good about the old one without any losses.