Quibi Shuts Down Just Six Months After Raising Nearly $2 Billion
The shortform mobile video startup Quibi is closing its doors and seeking buyers for its technology and content assets. Founders Jeffrey Katzenberg and Meg Whitman admit defeat after failing to attract enough subscribers to sustain the business.
Quibi is shutting down just six months after its highly publicized launch, marking a sudden collapse for the shortform mobile video startup. Founders Jeffrey Katzenberg and Meg Whitman announce in a public letter that they are winding down the business, selling assets, and returning remaining cash to shareholders. The decision to close comes even though the company still has hundreds of millions of dollars in the bank, showing that the leadership sees no viable path forward.
The executives acknowledge that their failure is not for lack of trying, noting that they exhaust every available option to save the company. Katzenberg and Whitman break the news to investors before holding an emotional town hall meeting with loyal employees who help build the platform from scratch. The shutdown ends a years-long effort by Katzenberg to reinvent entertainment consumption for mobile phones after he sells DreamWorks Animation in 2016.
Despite raising nearly $2 billion from major Hollywood studios and other investors, Quibi struggles to attract a sustainable subscriber base. The platform relies on a restrictive mobile-only format for its premium shortform shows, a strategy that ultimately fails to resonate with consumers. Now, the company focuses on laying off its staff and finding buyers for its proprietary technology and content library.