A venture capital firm has purchased Palo Alto-based cloud video gaming firm OnLive for a mere $4.8 million dollars. OnLive, which provides cloud-based streaming gaming through a simple set-top hardware device or through personal computers, was recently in the news because it was forced to create a new company and layoff workers to secure the deal. OnLive’s acquisition by a venture capital firm at this price is surprising, especially in light of the fact that its rival, Gaikai, was purchased for $380 million dollars by Sony. Engadget reports that OnLive was once valued at $1.8 billion, so its recent sale indicates that extent of the outstanding debt of OnLive at the time of its sale.