Short-form video streaming service ‘Quibi’ officially announces it’s shutting down

Quibi, the short-form video streaming service founded by Jeffrey Katzenberg and Meg Whitman, will shut down just six months after it launched down just six months after launch, the company announced Wednesday night.

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On Wednesday, ‘Quibi’ officially announces it’s shutting down

It’s officially the end of the road for Quibi. The company raised nearly $2 billion in funding, but failed to attract subscribers.

Image courtesy: Quibi

The company, led by founder Jeffrey Katzenberg and CEO Meg Whitman, confirmed that it intends “to wind down its business operations and initiate a process to sell its assets.”

The company, led by founder Jeffrey Katzenberg and CEO Meg Whitman, confirmed that it intends “to wind down its business operations and initiate a process to sell its assets.” The shutdown comes just a little over six months after Quibi launched in April, at the front end of the COVID pandemic’s sweep across the U.S.

“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,” founder Jeffrey Katzenberg and CEO Meg Whitman wrote in an open letter to investors, employees, and supporters. “We want you to know we did not give up on this idea without a fight.”

“The circumstances of launching during a pandemic is something we could have never imagined but other businesses have faced these unprecedented challenges and have found their way through it. We were not able to do so,” they wrote.

They said that in the coming months, they’ll look to find buyers for Quibi’s original content and its underlying technology platform.

“All that is left now is to offer a profound apology for disappointing you and, ultimately, for letting you down,” they wrote.

Know About Quibi

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The mobile-video service launched in April but has failed to attract viewers, and none of its shows have become major hits.

The app features short-form news and entertainment videos (or “quick bites”) running 10 minutes or less in length.

It attracted top Hollywood stars for its shows too, such as Chrissy Teigen and Idris Elba. 

In an open letter to investors and employees, Quibi founder Jeffrey Katzenberg and CEO Meg Whitman apologized, writing that Quibi didn’t succeed because the idea wasn’t strong enough for a standalone business, and because of the coronavirus pandemic.

“The circumstances of launching during a pandemic is something we could have never imagined but other businesses have faced these unprecedented challenges and have found their way through it. We were not able to do so,” they wrote.

The streaming service raised $1.75 billion from investors like Walmart, PepsiCo, and Anheuser-Busch ahead of its launch in April

Quibi is also the subject of a patent lawsuit over the technology it uses to rotate videos based on the orientation of the user’s phone.

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