You want to regroup, figure out WTF is going on and how the rumor started, and figure out a sensible statement that is going to calm this down instead of rile it up some more.
What kind of stupid thing could you say? The company is either dissolving or it is not. Seems pretty easy to figure out.
Still, Color is gash and an embarrassment to the whole industry, and its death would not be mourned by many.
If anything makes me think we're in a bubble, it's companies like Color and the people who pump money into them.
August 17, 2012 > OnLive lays off all employees, assets sold to new company [0]
5:20 PM - August 17, 2012 > OnLive Denies It's Shutting Down, Won't Comment on Layoffs [1]
08/20/2012 10:11:33 AM PDT > Game company OnLive reveals new details of restructuring [2]
Winding down a business might mean they are trying to orchestrate a merger or aq-hire. Or a whole host of other things. For which you would not want your name in the news (sensitive negotiations, or wat-ever).
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“We don’t respond to rumors, but the service is not shutting down,” OnLive said. [3]
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[0] http://www.gamasutra.com/view/news/176180/OnLive_lays_off_al...
[1] http://www.tomshardware.com/news/OnLive-Shutting-Down-Layoff...
[2] http://www.mercurynews.com/entertainment/ci_21351760/game-co...
[3] "Just a short while ago reports emerged that the gaming and virtual-desktop software start-up had issued pink slips to all of its employees and was effectively shutting down the service. The first part, we’re told by an OnLive spokesperson, is not the case." http://allthingsd.com/20120817/onlive-denies-reports-that-it...
EDIT: not somebody. It's Venture Beat that owes the explanation. Either they stand by the story even if they're willing to do that without full verification, or they must apologize for jumping the gun.
A smarter move may be looking at and pursuing several pivots, use that 40M to create a few startups within a startup and see if you can get something started that will provide a healthy return.
Is this another example of buyer beware when you invest in these kinds of companies?
Edit: In reply to the grandparent, because of the huge amount of money Color raised, they would need to make something like ten thousand dollars per user at their current user numbers to meet expectations. Since that's obviously impossible, it makes sense for them to avoid revenue entirely until their user numbers hit eight digits at least.
[1] http://www.appdata.com/apps/facebook/200067376723055-color
I don't really like Color just because its just not my thing but I don't quite get why everyone here hates them so much. There's a lot of vitriol spraying all over the place around here. Is it because they're super hyped and overvalued? I hate to break it to everyone if it is but most startups we read about here are overhyped and over valued. I don't get it. Seriously, I mean I get why people don't like Color but why does it seem everyone just hates them pretty severely around here?
