22 SEP 2020

QUIBI EXPLORES POTENTIAL SALE, AFTER LESS THAN SIX MONTHS OF LAUNCHING

After 6 months in service, the service has struggled to retain subscribers, gaining only 2 million subscribers by June. The company is considering fund-raising or merging with a special purpose acquisition vehicle. 

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According to a Wall Street Journal report, Quibi’s CEO Jeffrey Katzenberg is exploring a potential sale of the platform. The report mentioned that the service is also considering another round of funding or going public through a merger with a special purpose acquisition company, or SPAC. “Quibi has successfully launched a new business and pioneered a new form of storytelling and a state-of-the-art platform,” a company spokesperson said. “Meg and Jeffrey are committed to continuing to build the business in a way that gives the greatest experience for customers, the greatest value for shareholders, and the greatest opportunity for employees."

The short-form streaming service launched in April with nearly USD 2 billion in funding. Despite its funding and poopular presences, the service has struggled to gain subscribers amid the competitive streaming market.

The platform, led by Katzenberg and CEO Meg Whitman, netted its first two Emmy wins last week, but it’s struggled to gain a wide audience in its first six months. The company is working with financial advisers to consider a range of options, which include raising funds or going public by merging with a special purpose acquisition vehicle. 

In June, Quibi attracted 2 million subscribers by the end of the year, a much lower figure than its projection of 7.4 million. The following month, when its 90-day free trial expired, the service lost many subscribers. The service is priced at USD 4.99 per month for ad-supported streaming and USD 7.99 per month for ad-free streaming.

Quibi has successfully launched a new business and pioneered a new form of storytelling and a state-of-the-art platform. Meg and Jeffrey are committed to continuing to build the business in a way that gives the greatest experience for customers, the greatest value for shareholders, and the greatest opportunity for employees.” Quibi