Aereo Settles for $950K Broadcaster Payout on $99M Damages Claim

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Another milestone in the sad tale of Aereo: The failed startup has agreed to pay CBS, NBC, ABC, Fox, Telemundo. and other broadcasters less than $1 million in damages. While the broadcasters had asked for $99 million, they settled for $950,000. This leaves Aereo with $811,000, which it will use to pay non-broadcaster creditors and legal fees.

Back when it was in business, Aereo streamed local broadcast channels to subscribers, capturing that content with small personal antennas. After a handful of legal victories, the Supreme Court handed Aereo a defeat in June, 2014. Aereo filed for bankruptcy in November 2014, and its assets raised a scant $2 million at auction in February.

This payout agreement will settle all litigation between Aereo and the broadcasters that brought it down. Aereo had filed a lawsuit accusing the broadcasters of intentionally damaging its asset auction, but that will be dismissed as part of this settlement.

A hearing before a U.S. bankruptcy judge, scheduled for May 7, will approve the settlement.

TiVo purchased the Aereo trademark and customer list at the asset auction, and it recently put the list to use. A few days ago it mailed a special offer to Aereo customers offering them a deal on a four-tuner Roamio OTA DVR.

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