According to a report from PCWorld, smartphone and tablet manufacturer HTC has lost $40 million following cloud gaming platform OnLive being sold. HTC had made previous investments in the company, which was sold last week to a newly formed company.

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.