Quibi founder Jeffrey Katzenberg. Photograph by Stuart Isett for Fortune Magazine, licensed under CC BY-NC-ND 2.0

 Quibi, the video streaming service launched by Hollywood veteran Jeffrey Katzenberg, is considering several strategic options including a sale, raising more money, or merging with a blank-check firm, as first reported [paywall] by the Wall Street Journal. Quibi, which launched with $1.8 billion in funding, has struggled to meet subscriber targets for its short-form video streaming service. As of June of this year, the company was reported to be on pace to hit 2 million paid subscribers by the end of this year, compared to a set target of 7.4 million. Quibi is also battling a patent infringement lawsuit backed by a deep-pocketed hedge fund.

Quibi’s subscriber shortfall likely implies financial struggles for the company, which raised a whopping $1.8 billion before even formally launching. The company’s big raise was spearheaded by its founding team of Jeffrey Katzenberg, a Hollywood veteran who sold his previous company, DreamWorks Animation, for nearly $4 billion; and Meg Whitman, the former chief executive of technology companies eBay and HP. Katzenberg himself founded Quibi and later recruited Whitman to be chief executive following her departure from HP.

Being a consideration, there’s no guarantee that Quibi will eventually pursue any of the strategic options that it’s reported to be considering. 

Share this...

Facebook

Pinterest

Twitter

Linkedin

Whatsapp

Email

Print