The assets of OTT TV service Aereo have been sold to three buyers for a combined sum of under US$2 million.
Television technology company TiVo paid US$1 million for Aereo’s trademarks, domain names, and customer lists, while Alliance Technology Solutions took equipment for US$320,000 and RPX Corp. bought Aereo’s patents for US$225,000.
“We are very disappointed with the results of the auction,” said William Baldiga, counsel for Aereo and partner at Brown Rudnick. “This has been a very difficult sales process and the results reflect that.”
Eleven bids – five for the intangibles TiVo acquired and six for tangibles – were received by the company’s administrators.
Broadcasters ABC, CBS, Fox and NBC were last year able to convince US judges Aereo’s business model – charging consumers a monthly fee for retransmitted OTT streams of the networks’ signals – was in breach of law. Aereo was subsequently shut down and placed into administration.
Aereo had previously raised US$100 million from investors, but this week’s auction means its legal issued ultimately put paid to that value. In fact, the amont raised is less than half the US$4 million needed to pay creditors, and a huge way short of the US$31 million Aereo estimated it could recoup.
Aereo had rolled out in various US cities after winning initial court judgments against the broadcasters that suggested it was similar to cloud-DVR systems.
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20 June 2018 @ 12:15:00 UTC