Veoh Networks Heads To Bankruptcy
February 12, 2010 at 7:11 AM (PT)
VEOH NETWORKS has confirmed it is closing and will liquidate under bankruptcy protection. "The distraction of the legal battles, and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy," wrote Founder/CEO DMITRY SHAPIRO. "This chapter of our lives has come to an end."
THE WALL STREET JOURNAL reports SAN DIEGO-based VEOH, "founded in 2004, was one of many promising video-sharing start-ups and attracted funding from a host of well-heeled investors. Those included the venture-capital operations of GOLDMAN SACHS GROUP INC., TIME WARNER INC., and INTEL CORP. VEOH also received funding from TORNANTE CO., MICHAEL EISNER's investment vehicle."
In JANUARY 2009 (NET NEWS 1/6/2009), U.S. District Court Judge A. HOWARD MATZ ruled that UNIVERSAL MUSIC GROUP could not stop VEOH from claiming "safe harbor" protection in a copyright-infringement suit.
In SEPTEMBER (NET NEWS 9/15/2009), UNIVERSAL MUSIC GROUP lost its 2007 lawsuit against VEOH that UNIVERSAL claimed infringed on its copyrights by distributing online videos that featured music from its artists.