Veoh Chooses Death Over Competing With YouTube

Popular video site lays off staff, prepares to file for bankruptcy

By Sajid Farooq
|  Thursday, Feb 11, 2010  |  Updated 3:29 PM PDT
View Comments (
)
|
Email
|
Print
Veoh Chooses Death Over Competing With YouTube

Veoh let go of their employees Wednesday.

advertisement

Veoh's biggest victory may have ultimately led to its demise.

The once well-funded web video startup abruptly ended its five year run to profitability this week by laying off its staff and reportedly preparing to file for Chapter 7 bankruptcy.

A costly copyright lawsuit with Universal Music Group forecasted Veoh's end long before it happened by some. The one-time YouTube rival had eaten much of its $70 million in seed money and wore out its potential usefulness to major early investors like Goldman Sachs and Michael Eisner.

Veoh Board Member Todd Dagres turned to Twitter to blame the death of the company on the Universal suit despite his company's victory last September.

"Veoh is dead," he tweeted. "Universal Music lawsuit was the main killer."

The "mortally wounded" company struggled to entice investors -- or even a buyer -- to believe in the company and its reported 25 million users.

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
Bay Area Proud
Bay Area Proud is NBC Bay... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out