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Aereo auctioning off its TV streaming tech assets

Aereo CEO Chet Kanojia leaves the U.S. Supreme Court after oral arguments April 22, 2014 in Washington, DC.
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Aereo CEO Chet Kanojia leaves the U.S. Supreme Court after oral arguments April 22, 2014 in Washington, DC.

A bankruptcy court has allowed defunct video streaming company Aereo Inc to auction its TV streaming technology assets, according to court papers published on Friday.

The U.S. Bankruptcy Court in Manhattan ruled on Wednesday that Aereo could sell its assets, after the company reached an agreement with broadcasters over the sale process.

These broadcasters include CBS Corp, *Comcast Corp's NBC, Walt Disney Co's ABC and Twenty-First Century Fox Inc's Fox.

Under the agreement, Aereo will allow the broadcasters to attend the auction of the assets and provide them a weekly update on the status of the sale process.

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Aereo filed for bankruptcy in November, five months after the U.S. Supreme Court said it violated broadcasters' copyrights by capturing live and recorded programs on miniature antennas and transmitting them to subscribers for $8-$12 a month.

That decision effectively closed down New York-based Aereo, whose business model was to offer a less-expensive alternative to cable television.

The case is In re: Aereo Inc, U.S. Bankruptcy Court, Southern District of New York, No. 14-13200.

*Disclosure: Comcast owns NBC Universal, CNBC's parent.