“Chapter 11 will permit Aereo to maximize the value of its business and assets without the extensive cost and distraction of defending drawn-out litigation in several courts,” CEO Chet Kanojia wrote in a message on the company’s website Friday.
Variety reports, New York-based Aereo had raised about $97 million, from investors including IAC chairman Barry Diller, media investor Gordon Crawford, Himalaya Capital Management, Highland Capital Partners and FirstMark Capital.
Aereo’s service, which first launched in New York City in March 2012, streamed live over-the-air TV signals and recorded shows to subscribers on a range of devices. Aereo was sued by broadcasters for transmitting their TV signals without permission. The startup had argued that the service was a private performance, allowed under fair-use provisions of the Copyright Act, because the tiny antennas it used were dedicated to specific users.
Aereo won several legal victories in federal courts. But in June, the Supreme Court overruled those decisions, in a 6-3 ruling finding that Aereo had violated copyright laws. The high court essentially said the startup was akin to a cable TV operator, and hence was covered by the same laws.
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