YouTube cofounders Chad Hurley and Steve Chen are parting ways. The duo worked together for 15 years, starting at PayPal, then got $1.65 billion from Google. But faced a series of missteps at their incubator Avos Systems. Now Hurley is cutting his losses and focusing on just one Avos product, MixBit, and Chen is joining Google Ventures as an entrepreneur-in-residence.

One success never guarantees another: Chad Hurley, who helped bring the world YouTube, is bombing once again. His video-sharing service MixBit is dead following legal threats by Kanye West, and the parent company, Avos, is firing almost everyone. Updated:

As we mentioned earlier this week, Kanye and Kim are suing YouTube creator Chad Hurley for the allegedly unauthorized upload of their lavish, geek-studded proposal ceremony. Now we've got the full legal documents, and they go out of their way to call Hurley a loser.

Uploading a smartphone video recording of the Kanyedashian proposal seemed like a good idea. YouTube creator Chad Hurley has been struggling to find a second success, and putting hot celeb videos on MixBit—his newest project—drummed up instant interest. Unfortunately, Kanye West is furious.