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Veoh Pulls the Plug

ANOTHER ONE BITES THE DUST: After sinking $70 million into Veoh, the principals of the video site have decided to pull the plug, laying off what was left of the staff last Wednesday and filing for bankruptcy, Blogged Veoh founder and CEO Dmitry Shapiro: "Two years ago, Universal Music Group (UMG), the largest music company in the world, sued Veoh, alleging copyright infringement. While we made every effort to convince them that we were not their enemy and had not infringed on their content, they pursued a relentless war of attrition against us in federal court. We eventually prevailed in a decisive summary judgment that has set an important precedent for the entire industry. Unfortunately, great vision, a passionate team, tens of millions of users, millions in revenues and victory in court were not enough. The distraction of the legal battles, and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy." (2/16a)

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