Fans of live-streaming basic cable were disappointed when the online TV service Aereo was forced out of business by the federal government. The company, which was found to have violated copyright law and was placed under bankruptcy auction, earned less than $2 million.
Originally expected to field biddings of $4 million to $31.2 million from suitors, the New York-based company had 10 bidders, according to Aereo’s filing in bankruptcy court.
TiVo Inc. and RPX Corp. won the online service’s trademark, customer list, and patent portfolio, respectively. RPX is a patent-holding company. Alliance Technologies acquired some equipment from Aereo, which possibly means it is the proud new owners of the tiny antennas Aereo used to capture over-the-air television channels.
The web TV property might be going out with a whimper, but it wasn’t always so. Back when Aereo first made noise in 2012, the company had raised $100 million in venture capital. To see it sell off its assets in a fire sale auction is a sad ending to such an interesting tale.
"We are very disappointed with the results of the auction. This has been a very difficult sales process and the results reflect that," Aereo attorney William Baldiga said in a released statement.
The downfall for Aereo came when the broadcast networks didn’t give the company permission to stream basic cable programming to subscribers. At $8 a month, television watchers loved the opportunity to cut the cord and be able to watch live television from everywhere. Aereo attempted to fight (subscription required) to stay alive by taking its dispute to the U.S. Supreme Court. It lost in a pivotal decision last year and filed for Chapter 11 bankruptcy in November.
All the proceeds from the bankruptcy auction, which ran Tuesday and Wednesday, will be used to pay back Aereo’s creditors. The assets that weren’t put up for sale will be available for potential buyers to purchase through Aereo. The case, Aereo Inc., 14-bk-13200, U.S. Bankruptcy Court, took place in the Southern District of New York (Manhattan).
Photo: Santi Villmarin | Flickr
