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
 ya!”

She also wrote “our focus now is trying to recover as much
 investor capital as possible
”.

ouya-580x326

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
 this month.”

Maybe we should have seen this coming,
 though.

Source: Fortune

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