Click here to receive Mediabistro’s Morning Media Newsfeed via email.
Aereo Files for Bankruptcy (TVSpy)
With a post on the company’s blog Friday morning, Aereo founder and CEO Chet Kanojia announced the company had filed for bankruptcy protection. THR 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 the statement. “We encountered significant challenges from the incumbent media companies,” said Kanojia in the statement. Mashable Chapter 11 bankruptcy protection is typically expensive and allows for the company to restructure its debt. While filing for bankruptcy does not necessarily mean the end of the business, Kanojia struck a tone in a statement on Aereo’s website that insinuated the company was done. Variety 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. 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. GigaOM Aereo’s bankruptcy petition shows it owes roughly $2 million to a list of creditors that include Internet companies like Level 3 and Google, as well as several law firms. But the most significant creditors on the list are names like ABC and Fox, the TV networks that are continuing to sue Aereo over copyright infringement. Aereo’s filing simply states “unknown” in the amount owed to the “litigation party” TV stations, which also include PBS, Telemundo and NBC.