HTC, a Taiwanese phone maker company announced that they would loss about $40 Million from its stake in troubled cloud gaming firm OnLive.
According to sources, HTC made its $40 million investment in OnLive in February of last year, in what was seen as a move to eventually bring more online games to its company smartphones.
OnLive, which streams games over the Internet through PCs, also started hosting games for Android tablets and smartphones at the end of 2011.
HTC had originally bought a majority stake in Beats at $300 million, in order to improve the audio systems on its handsets.
But almost a year after the deal, HTC said in July it would sell back half its stake in the company, retaining a 25 percent ownership.