TiVo gets permission to acquire assets from Aereo

The company is said to have purchased Aereo's trademark and customer list, along with other assets

And the dismantling of Aereo gets one step closer to completion.

TiVo, which decided to purchase assets TV-streaming service Aereo during an auction that took place last month, has received approval from a U.S. Bankruptcy Court Judge to go ahead with the deal, the company revealed on Friday.

TiVo is said to have got Aereo's trademark, customer list and certain other assets in the purchase, though no specific details, including the price, have been disclosed.

VatorNews reached out to TiVo to find out what exactly it purchased, but the company declined to comment further.

"TiVo has always innovated to meet the constantly changing ways TV audiences choose to access content. This strategic acquisition of Aereo's trademarks and customer lists will enhance our ability to serve the growing segment of consumers who want access to both broadcast television and over the top content," Tom Rogers, President and CEO of TiVo, said in a statement.

"TiVo has found success in providing a more comprehensive offering and sophisticated user experience than any other player in the marketplace and we look forward to expanding on that success."

Aereo, which declared bankruptcy in November, received permission from a bankruptcy judge to auction off its technology, after it struck a deal with broadcasters over the sale process. It expected to net at least $4 million, or maybe as much $31.2 million.

Instead it only netted a disappointing $2 million. 

In addition to TiVo, others who bought Aereo's assets were RPX Corp., a patent risk-management company that won Aereo’s patent portfolio, and information-technology consultant Alliance Technologies, which acquired some of Aereo's equipment. 

The company also has some assets that weren’t put up for auction that it is seeking to sell. 

That $2 million is a far cry from the $97 million Aereo had raised in venture capital from investors that included IAC, Highland Capital Partners, FirstMark Capital, First Round Capital and High Line Venture Partners.

What happened to Aereo

So how did a company that was riding so high fall so far? Thank the Supreme Court of the United States.

Founded in 2011, Aereo was a Web platform that allowed users to watch live TV on their mobile devices or computers. It grabbed over-the-air TV signals, using tiny antennas, and routed them to users over the Internet, so that customers could watch broadcast TV whenever, and wherever, they want.

The problem that Aereo ran into was over retransmission fees, which requite cable operators, and other distributors, to obtain permission from broadcasters before carrying their programming. Operators will often be asked to pay to carry the station. 

The company tried to argue in front of the Supreme Court that its service differed from cable companies in one key way: while cable companies are constantly streaming, Aereo remains "inert" until the user decides to use it. It maintained that what goes out over the air should belong to the people. 

The Court said that it did not see enough of a difference between Aereo and a traditional cable company to justify Aereo's use of copyrighted material. Aereo tried to use that ruling to its advantage, asking the to be reclassified as a cable company, but was turned down by the Copyright Office.

Without a way to turn, the company closed it's offices, laid off staff and filed for chapter 11 bankruptcy.

This seems like the end of the line for Aereo, and there have already been reports that founder Chet Kanojia has already begun moving on to other things. 

(Image source: soldatjones.com)