It started with a whirlwind of rumour and speculation. Tweets and conversations from nobodies to executives all saying the same different thing. Online is dead?

At around 5pm (BST) I saw a tweet from Kotaku stating that OnLive employes had been seen leaving the OnLive head offices with boxes of belongings – never a good thing on a Friday. Rumours of bankruptcy being filed and pink slips being handed out began to circulate across twitter and the gaming community. OnLIve spokesman Brian Jaquet issued a number of responses from “no comment,” to “of course the company is not going out of business.”

confusion followed for many hours until the official word was released:

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 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.

We apologize that we were unable to comment on this transaction until it completed, and were limited to reporting on news related to OnLive’s businesses. Now that the transaction is complete, we are able to make this statement.

Today there is some confusion as to whether OnLive CEO Steve Perlman is still part of the company and who this ‘newly-formed company’ is? for now we know this OnLive lives. IMO its injured, bleeding, but still able to walk I just hope they take the time they’ve been given to now learn how to run.