Shutdown Reported at Veoh Networks, Backed by Boston’s Spark Capital and Other VCs
The lights are on, but is anybody left at Veoh Networks?
We’re seeing multiple accounts of sweeping layoffs at Veoh, the San Diego-based Internet TV service, with several citing a report by Media Memo’s Peter Kafka, who says a Chapter 7 bankruptcy liquidation is expected soon.
I sent a quick e-mail to Veoh CEO Dmitry Shapiro, asking if he could discuss reports of Veoh’s bankruptcy filing. He replied: “Not yet… stay tuned.”
Veoh’s website is still accessible, but the venture was pronounced dead in a tweet today by Veoh board member Todd Dagres of Spark Capital, a Boston VC firm that invested in Veoh Networks. Dagres tweeted, “Veoh is dead. Universal Music lawsuit was the main killer. Veoh won resoundingly but was mortally wounded by the senseless suit. Next.”
Dagres was referring to a copyright suit filed that Universal Music Group filed against Veoh, arguing that Veoh didn’t work hard enough to keep Universal’s copyrighted material from being uploaded illegally to Veoh’s website. A federal judge ruled last September that Veoh was protected from Universal’s infringement claims.
Veoh had raised more than $67 million in venture funding from backers that included Spark, Shelter Capital Partners, Goldman Sachs, Adobe Systems, Intel Capital, and Time Warner Investments.
As Shapiro says, stay tuned…
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