Aereo Files For Bankruptcy

(RTTNews) - Aereo, the online video streaming company, announced that it has filed for Chapter 11 reorganization proceedings. The company appointed Lawton Bloom of Argus to serve as Chief Restructuring Officer.

The company's service that allowed subscribers to view live and time-shifted streams of over-the-air television on Internet-connected devices was launched in February 2012 and was backed by Barry Diller's IAC/InterActiveCorp (IACI).

This filing for bankruptcy comes after the U.S. Supreme Court's recent decision that Aereo violated broadcasters' copyrights, creating regulatory and legal uncertainty. Aereo said that the reversal of the Second Circuit decision in June by the U.S. Supreme Court has proven difficult to overcome. Aereo's services were suspended on June 28, 2014.

Aereo's Chief Executive Officer Chet Kanojia, said in a letter to consumers,"We knew we had touched a nerve, had created something special, and had a built something meaningful for consumers. But we encountered significant challenges from the incumbent media companies."

Kanojia added, "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."