Aereo Declares Bankruptcy

Online video distributor Aereo, which suspended operations three days after its Supreme Court defeat in June, said on Friday that it filed for bankrputcy.

CEO Chet Kanojia says in a post on the company's blog that the move “will permit Aereo to maximize the value of its business and assets without the extensive cost and distraction of defending drawn out litigation in several courts.”

The step comes two weeks after Aereo laid off most of its staff and closed its Boston office.

The Barry Diller-backed company launched in New York two years and expanded to 12 cities before ceasing operations in June, shortly after the Supreme Court ruled that the service infringed broadcasters' copyrights. But even after suspending service, Aereo continued to incur costs of around $1 million a month, Kanoja said in court papers filed this summer.

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