Streaming television startup Aereo has been sold off for parts in a bankruptcy auction, with TiVo getting control of the company's trademark and customer list.
In total, the auction netted less than $2 million, according to Aereo. The company had been funded to the tune of almost $100 million.
“We are very disappointed with the results of the auction. This has been a very difficult sales process and the results reflect that.” William Baldiga, counsel for Aereo and partner at Brown Rudnick, said in a press release.
RPX Corporation won Aereo's patent portfolio, while Alliance Technologies will get Aereo's equipment. Some of Aereo's technology was not sold, and other options will be explored, a source with knowledge of the auction said.
The auction is a sad end for what had become one of the most-watched startups of 2013 and 2014. Aereo's primary business centered on charging customers for access to streaming broadcasts of local television channels.
It faced significant legal challenges that culminated in a loss at the Supreme Court, which found that Aereo had violated copyrights by retransmitting TV channel without consent. The company had argued that its system, in which customers leased a small antenna and cloud recording system, meant that it did not need to strike deals with broadcasters or local affiliates.