Online video website Veoh has announced it will be shutting down and filing for bankruptcy.
Veoh launched in 2005 and its backers included Shelter Capital, Spark Capital, Michael Eisner's Tornante Company, Goldman Sachs, Time Warner, Intel Capital, Adobe, Gordon Crawford, Firefly3 and Jonnathan Dolgen. Those backers supported Veoh with $70 million in investments.
Dmitry Shapiro, CEO and founder of Veoh, said part of the company's problems were due to a costly legal battle with Universal Music Group over copyright infringement and the challenging economic environment.
"Unfortunately, great vision, a passionate team, tens of millions of users, millions in revenues and victory in court were not enough," Shapiro wrote in a blog post.
"The distraction of the legal battles, and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy."
Under Chapter 7 bankruptcy, Veoh will sell its assets and will use the money to repay its creditors.
Shaprio said Veoh had 28 million users per month, he did not provide details about the future of the site and what will happen to its content.
"This chapter of our lives has come to an end, but a bright new chapter will soon begin, and I assure all of you reading this, that we have lots of important work ahead of us. Stay tuned, you will hear from us again!" Shapiro wrote.