Aereo, a US-based online television streaming service backed by internet media company IAC, has filed for chapter 11 bankruptcy, CEO and founder Chet Kanojia revealed on Friday.
Aereo has raised $97m across four funding rounds from investors including IAC, which first invested in its $20.5m series A round in 2012. IAC subsequently co-led its $38m series B and contributed to a $34m round raised in January this year.
The company’s other backers are Himalaya Capital Ventures, First Mark Capital, Highland Capital Partners, First Round, High Line Venture Partners and SV Angel.
Launched in 2012, Aereo offered a subscription service that let users stream TV content over the internet using physical antennae it set up which enabled the user controlled to switch channels.
However, earlier this year, broadcasters ABC, NBC and CBS successfully argued in the US Supreme Court that the company was unlawfully exploiting their copyrighted works without permission or payment, and the service was ruled illegal in June.
In a blog post, Kanojia explained: “The US 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.”