TECH

Aereo Cleared To Auction TV Streaming Technology In Bankruptcy Deal

Chet Kanojia, chief executive officer of Aereo Inc., leaves the U.S. Supreme Court following oral arguments by Aereo Inc. and
Chet Kanojia, chief executive officer of Aereo Inc., leaves the U.S. Supreme Court following oral arguments by Aereo Inc. and American Broadcasting Companies Inc. in Washington, D.C., U.S., on Tuesday, April 22, 2014. U.S. Supreme Court justices questioned the legality of Aereo Inc., the Barry Diller-backed startup aiming to upend the broadcast industry's decades-old business model by selling live television programming over the Internet. Photographer: Andrew Harrer/Bloomberg via Getty Images

(Reuters) - A bankruptcy court has allowed defunct video streaming company Aereo Inc to auction its TV streaming technology assets, according to court papers published on Friday.

The U.S. Bankruptcy Court in Manhattan ruled on Wednesday that Aereo could sell its assets, after the company reached an agreement with broadcasters over the sale process.

These broadcasters include CBS Corp, Comcast Corp's NBC, Walt Disney Co's ABC and Twenty-First Century Fox Inc's Fox.

Under the agreement, Aereo will allow the broadcasters to attend the auction of the assets and provide them a weekly update on the status of the sale process.

Aereo filed for bankruptcy in November, five months after the U.S. Supreme Court said it violated broadcasters' copyrights by capturing live and recorded programs on miniature antennas and transmitting them to subscribers for $8-$12 a month.

That decision effectively closed down New York-based Aereo, whose business model was to offer a less-expensive alternative to cable television.

The case is In re: Aereo Inc, U.S. Bankruptcy Court, Southern District of New York, No. 14-13200.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Kirti Pandey)

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