HTC, $40M Down From OnLive, Puts $35.4M Into Magnet Systems For Enterprise Apps


HTC, the troubled Taiwanese handset maker, today dealt its investors a one-two punch. The company will take a $40 million hit from its investment in the cloud-based gaming startup OnLive, but it will also be redoubling its efforts to find new sources of revenue, this time in enterprise services: it is making a $35.4 million investment in Magnet Systems, an enterprise applications startup backed by Andreessen Horowitz, among others.

HTC says it will take a 17.1% stake in the company, a Series B investment, equivalent to $35.4 million. To date, Magnet had raised $12.6 million led by Andreessen Horowitz in a Series A round. The investment announcement was first spotted by Reuters.

The move signals a new strategic interest for HTC, in the area of enterprise services, at a time when its investments in more consumer-focused services seem to be falling flat.

“The investment will bring social, mobile…

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