Peak Hosting has filed for bankruptcy protection. The Tualatin, Oregon based web hosting firm is restructuring and is in the midst of litigation against Machine Zone. Peak Hosting is seeking $96.7 million in damages after Machine Zone terminated its relationship with Peak Hosting. Before, Peak Hosting signed Machine Zone as a customer, Peak Hosting had revenues of $1 million dollars per month. After signing the contract with Machine Zone, Peak Hosting’s monthly revenue was $5 million dollars per month. After signing the contract with Machine Zone, Peak Hosting purchased over $35 million dollars in hardware to support Machine Zone.
Machine Zone, the mobile game developer behind Game of War and Mobile Strike, alleges that Peak Hosting had multiple outages (one lasted over 2 hours) and were not keeping up their end of a contract the two parties had signed.
Oregon Live has uploaded legal statements from both sides. Click here for Peak Hosting’s side of the story and click here for Machine Zone’s side of the story.