Despite $1.75B Funding, Quibi Is Shutting Down 7 Months After Launch
Less than seven months after launching, short-form video platform Quibi is shutting down and co-founders Jeffrey Katzenberg and Meg Whitman are left explaining how they burned through $1.75B.
“Quibi is not succeeding,” said the celebrity CEOs. “Likely for one of two reasons: because the idea itself wasn’t strong enough to justify a standalone streaming service or because of our timing. Unfortunately, we will never know but we suspect it’s been a combination of the two.
But many observers questioned the business model – which paid handsomely for content similar to that available free elsewhere in hopes that millions would be willing to pay a monthly subscription – from the start.
According to the LA Times: “Hollywood-based Quibi, which employed 265 people as of April, plans to use its remaining cash of about $350 million to pay back investors, sources said, a stunning turn of events for a company that promised to transform the entertainment industry. Quibi said in a statement Wednesday it will close down the business and begin the process of selling off assets…”
“Over the coming months we will be working hard to find buyers for these valuable assets who can leverage them to their full potential,” said the pair.