Aereo

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variety.com/2014/digital/news/aereo-files-for-bankruptcy-1201361949/


Aereo Files for Bankruptcy


Startup had raised about $97 million from Barry Diller, Gordon Crawford and others


Aereo, the Internet TV-streaming service that suffered a crushing legal defeat at the Supreme Court this summer, said it has filed for Chapter 11 bankruptcy protection.

“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.

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.

The U.S. Supreme Court decision “effectively changed the laws that had governed Aereo’s technology, creating regulatory and legal uncertainty,” Kanojia said in the post Friday. “And while our team has focused its energies on exploring every path forward available to us, without that clarity, the challenges have proven too difficult to overcome.”

Earlier this month Aereo laid off a majority of its staff, including employees in New York and Boston. The company said a small executive team of about a dozen people would remain.

With Aereo’s Chapter 11 reorganization proceedings, it has also appointed Argus Management managing partner Lawton Bloom to serve as Aereo’s chief restructuring officer.

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www.hollywoodreporter.com/news/aereo-files-bankruptcy-protection-751051

Aereo Files for Chapter 11 Bankruptcy

The digital TV service made a voluntary filing for bankruptcy protection citing "regulatory and legal uncertainty"


Digital TV service Aereo on Friday said it has filed for bankruptcy protection.

The digital TV service, which broadcast network owners battled in courts for offering access to broadcast TV signals via digital devices, made a voluntary Chapter 11 filing, it said in a statement on its website. "We encountered significant challenges from the incumbent media companies," said CEO Chet Kanojia in the statement.

A court injection recently shut down the service after it lost a high-profile Supreme Court case in June.

"While we had significant victories in the federal district courts in New York and Boston and the Second Circuit Court of Appeals, the reversal of the Second Circuit decision in June by the U.S. Supreme Court has proven difficult to overcome," he wrote. "The U.S. Supreme Court decision effectively changed the laws that had governed Aereo’s technology, creating regulatory and legal uncertainty. And while our team has focused its energies on exploring every path forward available to us, without that clarity, the challenges have proven too difficult to overcome."

Added the CEO: "Accordingly, today, we filed for Chapter 11 reorganization proceedings. We also appointed Lawton Bloom of Argus to serve as Aereo’s chief restructuring officer during this period. 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."

Arguing that Aereo had a "long and challenging road," Kanojia concluded: "We stayed true to our mission, and we believe that we have played a significant part in pushing the conversation forward, helping force positive change in the industry for consumers."

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www.hollywoodreporter.com/thr-esq/aereo-investors-lose-a-956-751094

Aereo Investors Lose a $95.6 Million Bet on Future of Television

According to bankruptcy papers, Aereo has just $4.6 million in cash left

When Aereo launched in February 2012, Barry Diller and other investors in the streaming TV service spoke hopefully of freeing programming from a closed network. Were they too optimistic?

Aereo scored $95.6 million in venture equity despite a legal bull rush from television networks who contended the company was violating their public performance rights. Remarkably, $33.5 million of Aereo's funding — more than a third — came in October 2013 as the case was nearing the Supreme Court. The high court hadn't yet delivered its near death knell. In Aereo, they thought they had a technology that would disrupt the billions of dollars spent on cable and satellite service.
On Thursday, Aereo declared Chapter 11 bankruptcy, and according to the debtor's court documents, the upstart had burned through most of its funding. Aereo counts $20.5 million in assets but just $4.6 million in cash on hand. That's against $4.2 million in undisputed liabilities. Level 3, Quality Technology Services and Google are the three biggest creditors. Law firms come next.
The company is of course still facing liability for allegations of copyright infringement (though the broadcasters' lawsuit will automatically be put on hold thanks to the bankruptcy filing) and remains hopeful about the future, stating in one filing, "If the FCC elects to permit internet transmission of local linear broadcast channels, then the Debtor, assuming its continued viability, expects to be able to operate profitably within that framework.
However, that will come too late for the 74 unfortunate employees in Boston and New York who were laid off from the company last week. Like the investors, they hitched themselves to the wrong wagon, although Aereo is attempting to get the bankruptcy court's approval to pay them the salary and benefits promised.
In truth, Aereo never surpassed 80,000 subscribers, according to documents filed with the Copyright Office. That's something to keep in mind before Aereo becomes an exemplar of promising technology killed by the stubbornness of the establishment.
Yes, Aereo was still in the growth stage and company executives like chief executive Chet Kanojia said the company could be profitable with even a low number of subscribers. According to the bankruptcy papers, Aereo was grossing over $3 million from its consumers before ceasing its operations last September. However, there might have been 80,000 news articles written about Aereo in its two years of operation. If anyone keeps a measure of publicity to consumer traction, Aereo would probably score very low.
The company is now in the hands of lawyers. Lots of them. In fact, there are six firms cleaning up the affairs of Aereo. There's Brown Rudnick, handling the bankruptcy. There's Fish & Richardson as well as Durie Tangri, still defending the company against broadcasters. There's Houston & Associates, managing the company's patent portfolio. And finally, there's Constantine Cannon, advising on FCC regulatory matters, and Womble Carlyle Sandridge & Rice, doing the same with the Copyright Office, as Aereo attempts to pull itself out from bankruptcy with new hope about the future of television.

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deadline.com/2014/12/aereo-bankruptcy-auction-deal-1201336791/

Aereo To Sell Off Technology In Bankruptcy Deal

Aereo has reached a deal with broadcasters in U.S. Bankruptcy Court that will allow the former streaming service to auction off its TV technology — as long the the networks be allowed to monitor the process and examine any potential deal. The latest news comes after Aereo filed for voluntary Chapter 11 reorganization last month following the U.S. Supreme Court’s decision in June that Aereo must pay broadcasters to retransmit their free, over-the-air signals.

According to the order filed Wednesday in U.S. Bankruptcy Court in New York, the final bidding deadline is February 15, 2015 “for all or substantially all of its assets, pursuant to Section 363 of the Bankruptcy Code (the “Sale”), as an entirety or in one or more lots,” wrote U.S. Bankruptcy Judge Sean H. Lane. The court said the auction will be held February 24, with a deadline of sale approval set for March 11. The creditors — including the parent companies of the Big 4 networks– will receive weekly updates on the sales process and be allowed to attend the auction.

The doc also says Aereo retains the right to seek approval of a stalking horse and stalking horse bid “consistent with the Bidding Procedures,” including payment of any break-up fee.

That Supreme Court case ended pretty much all hope that Aereo could continue as a TV service, which broadcasters opposed because it violated networks’ copyrights. In October, a U.S. District Court imposed a nationwide injunction. The company also hoped that the FCC or the U.S. Copyright Office might deem it the equivalent of a cable company, which might have opened opportunities to negotiate programming deals or offer local broadcast signals for a relatively small fee.

At the time of the bankruptcy filing, Aereo said it was to preserve its value “without the extensive cost and distraction of defending drawn out litigation in several courts.”

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variety.com/2015/digital/news/tivo-completes-acquisition-of-aereo-trademarks-customer-lists-for-1-million-1201452128/

TiVo Completes Acquisition of Aereo Trademarks, Customer Lists for $1 Million

TiVo’s purchase of certain assets from Aereo — the Internet TV streaming startup that was forced to shut down last year after losing a copyright-infringement case brought by broadcasters — for about $1 million has been approved by federal bankruptcy court.

TiVo is acquiring Aereo’s trademarks and customer lists. RPX Corp., a patent-aggregation firm, is paying $225,000 for Aereo’s patents, while Alliance Technology Solutions is buying the startup’s equipment for $300,000.

The sales were officially approved March 11 by the U.S. Bankruptcy Court for the Southern District of New York.

“This strategic acquisition of Aereo’s trademarks and customer lists will enhance our ability to serve the growing segment of consumers who want access to both broadcast television and over-the-top content,” Tom Rogers, president and CEO of TiVo, said in a statement. “TiVo has found success in providing a more comprehensive offering and sophisticated user experience than any other player in the marketplace, and we look forward to expanding on that success.”

Aereo filed for Chapter 11 bankruptcy protection in November 2014. The New York-based company 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 starting at $8 per month. Aereo was promptly 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 last 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.