Video sharing service Veoh that--despite raising more than $70 million from investors that included Michael Eisner-in February said it was planning to declare bankruptcy, has liquidated all of its remaining asset in a sale to Internet start-up Qlipso, which lets users chat while sharing online video and games. Terms of the deal haven't been disclosed.
Qlipso is backed by Israeli VC fund Jerusalem Ventura Partners, and says purchasing Veoh-which launched in 2008 and once had as many as 28 million users per month-will allow it to take "the best of social, multi-player online gaming and apply that to mainstream digital content." Qlipso said full integration of the two companies will take about a year, adding that it will launch with an ad-based model that will grow into a subscription service and incorporate virtual sales.
Veoh streaming numbers were solid, but it ran into a buzz saw in Universal Music Group which sued it for copyright infringement. The suit drained Veoh's finances. Qlipso told Reuters it was trying to work out accommodations with content owners, and will give publishers tools to take down materials. It also plans to police its own content with-gasp!-human oversight as well as software.
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