The process left OnLive with about half its former staff and the company's investors with nothing. Among those whose shares became worthless is Steve Perlman, a well-known technology entrepreneur who founded OnLive and remains chief executive.

Gary Lauder of Lauder Partners, a technology investment fund primarily for his family, bought OnLive's assets for an undisclosed amount. The company on Sunday described the deal as "a heartbreaking transition for everyone involved with OnLive," though essential to allow its service to continue without interruption.