Quibi Shuts Down After Six Months and $1.75 Billion Raised
Quibi abruptly winds down its short-form streaming service just six months after its high-profile launch. The company admits defeat, plans to sell its assets, and promises to return unspent funds to shareholders.
Quibi officially shuts down its short-form streaming service just six months after its highly anticipated launch. The Los Angeles-based startup raises $1.75 billion from major entertainment investors but fails to attract a significant audience for its Hollywood-caliber, bite-sized videos. Cofounders announce they are winding down the business and looking to sell the company's content and technology assets.
Executives initially blame the coronavirus pandemic for the poor launch timing but ultimately backtrack on that excuse in their farewell message. They acknowledge that while other businesses successfully navigate the unprecedented challenges of a global shutdown, Quibi is not able to find its way through. The startup plans to return any remaining unspent cash to its shareholders.
Critics point out that the platform is ill-conceived from the very beginning despite its star-studded leadership and A-list celebrity content. Founder Jeffrey Katzenberg previously compares the service to the launch of HBO, but those high aspirations never materialize in an incredibly crowded streaming market. The abrupt end marks a spectacular collapse for one of the most well-funded startups in recent history.