Video service Quibi exploring 'strategic options' including possible sale
Recently launched streaming service Quibi is reportedly exploring "strategic options," including the possibility of a sale, as it struggles to hit initial subscriber targets.
Credit: Quibi
The short-form video service, started by Hollywood mogul Jeffrey Katzenberg, first launched in April. Since then, however, the service has reportedly struggled to bring in subscribers in a crowded market.
According to The Wall Street Journal, the service is exploring a variety of options. That could include a sale, raising more money, or going public through a merger with a special purpose acquisition company.
Quibi launched in the midst of the coronavirus pandemic. The company is likely to miss its initial paid subscriber target by a large margin, and is also facing a patent lawsuit.
The show's main differentiator was short-form video content that was optimized for mobile devices like the iPhone and iPad. Thus far, that format has apparently left consumers unswayed.
Quibi declined to confirm to the Journal that it's exploring alternate options. It say it remains "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."
Back in July, Quibi was reportedly a potential acquisition target for Apple. It isn't clear if this is still the case.
Credit: Quibi
The short-form video service, started by Hollywood mogul Jeffrey Katzenberg, first launched in April. Since then, however, the service has reportedly struggled to bring in subscribers in a crowded market.
According to The Wall Street Journal, the service is exploring a variety of options. That could include a sale, raising more money, or going public through a merger with a special purpose acquisition company.
Quibi launched in the midst of the coronavirus pandemic. The company is likely to miss its initial paid subscriber target by a large margin, and is also facing a patent lawsuit.
The show's main differentiator was short-form video content that was optimized for mobile devices like the iPhone and iPad. Thus far, that format has apparently left consumers unswayed.
Quibi declined to confirm to the Journal that it's exploring alternate options. It say it remains "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."
Back in July, Quibi was reportedly a potential acquisition target for Apple. It isn't clear if this is still the case.
Comments
That's not what Quibi is.....
Original content in an innovative mobile format.
That makes no sense. Quibi would cost something like 500 million where TikTok was what? 10 billion? TikTok is also different. Quibi comes with original content.
Yeah these replies are strange. Someone thought it was a social media platform.
Also, they seem to have the feminist, anti-male content that Apple tends to lean toward.
I always got the feeling that Quibi was created just for acquisition. The execs had that vibe that begged for an acquisition from a bigger company.
Either number is a rounding error for a company with a market cap in the ballpark of $2,000B (0.5% to 1.5%). Assuming it made strategic sense (but I did not suggest it would -- read again).
Quibi is dead. It ain't getting sold. This is a save-face PR news dump.
True but I still got that vibe from the company that they only existed in hopes for an acquisition from Netflix, Apple, AT&T etc.
Maybe they spent that $2 billion trying to impress bigger companies instead of impressing viewers.
I'm not defending it, but they did have an innovative idea and all original content that Apple may want.