Veoh founder Dmitry Shapiro has confirmed that the Web video service company would be liquidating and filing Chapter 7 bankruptcy.
“The distraction of the legal battles, and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy.” said Shapiro, speaking about the lawsuit Universal Music Group filed against them in 2008.
Shapiro added that the Veoh had over 28 million users at one point and was generating revenue at a run rate of $12 million. “[We] helped educate many blue chip advertisers about the bright future that online video holds for them,” he said.
