https://online.wsj.com/article/SB10001424052748703382904575060142323993752.html
* TECHNOLOGY
* FEBRUARY 11, 2010, 9:52 P.M. ET
Veoh Networks to Liquidate
By ANDREW MORSE
Veoh Networks Inc., a video-sharing Web site backed by high-profile
investors, said on Thursday it is closing and would 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,”
Dmitry Shapiro, the company’s founder and chief executive, wrote on
his personal site. “This chapter of our lives has come to an end.”
A spokesperson for Veoh didn’t immediately return a call seeking comment.
The closure was earlier reported by the All Things Digital blog, which
is owned by News Corp., which also publishes The Wall Street Journal.
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.
The site, which had tried for years to carve out a niche by offering
both user-generated content and professional shows, was eclipsed by
rivals like Google Inc.’s YouTube and Apple Inc.’s iTunes. Veoh said
it attracted more than 28 million unique users per month world-wide.
Veoh’s shutdown comes despite a ruling in September that handed it a
victory in a closely watched legal battle with Vivendi SA’s Universal
Music Group. The music label had accused Veoh of infringing on its
copyrights by distributing online videos that featured music from its
artists, but a federal judge ruled the Digital Millennium Copyright
Act protected Veoh.
At the time, Mr. Shapiro said the site wasn’t yet profitable but
expected to be in the second quarter of 2010. Last year, the company
had informal talks with a number of companies to explore a sale or
investment, according to two people familiar with the talks.
Write to Andrew Morse at andrew.morse@wsj.com
Copyright ©2010 Dow Jones & Company, Inc.
