Quibi Holdings LLC is shutting down almost six months after launching its streaming service, one of the shortest-lived streaming services to date. The company confirmed that in a Medium post from Jeffrey Katzenberg and Meg Whitman. Quibi founder Jeffrey Katzenberg has spent the day calling investors to inform them of the shutdown.
The company said, “We feel that we’ve exhausted all our options. As a result, we have reluctantly come to the difficult decision to wind down the business, return cash to our shareholders, and say goodbye to our colleagues with grace,”
Quibi Says Good-Bye
In April 2020, Quibi comes into existence and despite raising $1.75 billion in the capital, it has failed to gain mainstream viewership. The aim of the service was that the shows would be divided into short-form “quick bites” and would be formatted to watch on an iPhone display in portrait orientation. The startup also attracted some of the biggest names in Hollywood and had looked to revolutionize how people consume entertainment.
Well, there can be some other reason too behind its failure, like it attain the attention of viewers at the height of a global pandemic when users were stuck at home but the lack of any real and unique content that was compelling enough to tempt subscribers. On other hand, it also couldn’t compete in short-form video content with YouTube, TikTok, and other platforms.
The Wall Street Journal recent report says that Quibi hired a restructuring firm to “value its options”. The firm recommended a list of potential ideas, including that the company shut down.
On Wednesday, Quibi founder Jeffrey Katzenberg called investors to tell them he is shutting the service down, some of the people said.
In recent weeks, Quibi hired a restructuring firm to evaluate its options, the people said. The firm recommended the options to the board of directors this week, a list that included shutting the company down.
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