Ouya is in trouble. In a leaked email, CEO Julie Uhrman
reportedly told investors and advisors that the company is in
desperate need of a buyer after failing to restructure their
debt. This comes after Ouya successfully secured investments
from Alibaba in February to the tune of $10 million, and $15
million in a series A funding round two years ago. On top of
that, Ouya earned an unknown amount via venture capital firm
TriplePoint Capital. For now, Ouya’s focus is on ‘recovering’
as much capital as they can.
In her email, which has been obtained by Fortune, Ouya CEO
Julie Uhrman wrote “we believe we’ve built something real
and valuable. I continue to read the tweets and emails of our
fans who play OUYA every day, and our catalog is now over 1,000
apps and 40,000 developers. We have the largest library of
Android content for the TV (still more than Amazon) — hells
She also wrote “our focus now is trying to recover as much
investor capital as possible”.
To recover that debt, Ouya has been looking overseas. Ouya’s
library is currently under contract to make its way to
Xiaomi and Alibaba boxes in China.
Launched in 2012, Ouya’s mission was to bring standalone
Android gaming to the big screen via a set-top console. A
successful crowdfunding campaign ultimately yielded in clunky
hardware and a games library full of barely passable titles.
Now, Ouya faces competition from well-heeled games firms
MadCatz and NVIDIA, as well as Google itself. It’s not clear
just how much trouble Ouya is really in, but Fortune’s Dan
Primack notes Ouya has overstepped a ‘debt covenant’,
suggesting they’ve reached the point of no return. Uhrman also
wrote “given our debtholder’s timeline, the process will be
quick. We are looking for expressions of interest by the end of