Well, that failed to escalate quickly! According to reports in the Wall Street Journal the mobile streaming platform Quibi is to fold only after six months. The Jeffrey Katzenberg and Meg Whitman led company failed to break through and garner enough subscriptions. This weakness meant they failed to find a willing buyer.
The report indicates that the leaders confirmed this in a telephone call to an investor yesterday. A restructuring consultant could find no solution and recommended the firm be folded. When approached for comment by Variety, Katzenberg confirmed the plan is to:
“…wind down its business operations and initiate a process to sell its assets”.
He went on to say:
“…the changed industry landscape and ongoing challenges, it was clear that the business would not be able to continue operating for the long-term on a standalone basis. (The remaining funds it has) will be returned to its investors as specified in the company’s operating agreement.”
Quibi doesn’t own or produce itself, it takes a seven-year license on content with exclusive rights for two years. With short form, ten or twenty minute episodes and mobile only content it should have been an urban commuters dream. However just as they launched most of the world was suddenly placed on home lockdown by a pandemic. Commuting ceased.
They did launch a smart TV app but that was too late to save them.