Orange County start-up could be worth well over $500 million.
FORTUNE — Gaikai, a popular provider of cloud-based streaming services for PC and console games, in on the block. Sources tell me it already has hired bankers, and is expecting well in excess of $500 million.
The Aliso Viejo, Calif.-based company has raised around $45 million in VC funding, from firms like Benchmark Capital, Rustic Canyon Partners, Intel Capital, New Enterprise Associates and Qualcomm Ventures. Strategic partners include Walmart, YouTube and Electronic Arts.
Gaikai is basically the big privately-held rival to OnLive, which last year supplemented its VC funding with $40 million from HTC. No word yet on who suitors would be, but possibilities include game platform companies (e.g., Nintendo, Microsoft, Sony, etc.), cable/broadband companies (AT&T, Comcast, etc.) and possibly large game publishers.
Intel INTC also may take a hard look to support development of its upcoming Internet-based TV service (particularly given that Intel also has visibility into the company via Intel Capital).
No comment from Gaikai, natch.
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