Aereo files for Chapter 11 bankruptcy

FBN's Ashley Webster on Aereo's Chapter 11 bankruptcy filing.

TV streaming service Aereo files for bankruptcy

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Television streaming service Aereo Inc filed for bankruptcy protection after a U.S. Supreme Court ruled in June that the company's business model violated copyright laws.

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Aereo, in which Barry Diller's IAC/InterActiveCorp has a 23.30 percent stake, said in a Chapter 11 filing late on Thursday said it would sell its assets or reorganize.

The court said Aereo had infringed copyrights of broadcasters by capturing live and recorded programs through antennas and transmitting them to subscribers for $8-$12 a month.

The ruling was a victory for broadcasters such as CBS Corp , Comcast Corp's NBC, Walt Disney Co's ABC and Twenty-First Century Fox Inc's Fox network.

Aereo, which raised $95.6 million in financing, suspended its streaming service at the end of June and cut jobs.

The company listed total assets of $20.5 million and debt of about $4.2 million in its filing.

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The filing is In re: Aereo Inc, U.S. Bankruptcy Court, Southern District of New York, No:14-13200. (Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)