Streaming service Quibi explores strategic options, including sale

Before its launch in early April Quibi had raised $1.75 billion in funding and had booked $150 million in advertising deals

The short-form streaming service launched in April but has badly underperformed in gaining subscribers in the ultra-competitive streaming space.

The report adds that, should a buyer not emerge, Quibi could consider raising additional funding or launching an IPO via a merger with a special objective acquisition company (SPAC). In a statement, a spokeswoman said, "Quibi has successfully launched a new business and pioneered a new form of storytelling and state-of-the-art platform". "Jeffrey and Meg are committed to continuing to build the business in the way that gives the greatest experience for customers, greatest value for shareholders and greatest opportunity for employees".

Representatives for Quibi declined to comment on the "rumor and speculation" in the Journal's report.

Continue reading Quibi Reportedly Looking At A Possible Sale & Other Options As Streaming Service's Struggles Continue at The Playlist. Hollywood mogul Jeffrey Katzenberg, who founded the company with CEO Meg Whitman, blamed Quibi's slow start on the coronavirus pandemic and said the early engagement figures are "not close to what we wanted". But Turnstyle is also the subject of a patent lawsuit against Quibi brought by video tech company Eko with backing from activist hedge fund Elliott Management Corp.

Last month, Kantar said that 33% of Quibi subscribers plan to cancel in the next three months, based on data from 20,000 consumers and 2,500 new subscriber interviews.

The tech's possibilities are being demonstrated by a new series on Quibi, "Wireless", which enables viewers to see different versions of the video content on the screen depending on what angles they're holding their phones.

In the United States and Canada, Quibi is offering an ad-supported version of the app for $4.99.



Other news