Quibi, the mobile streaming service, begun amid great fanfare. And nearly $2 billion in startup resources by Jeffrey Katzenberg and Meg Whitman is formally shutting down.
Katzenberg and CEO Whitman took a video call with investors this afternoon to explain their decision. And also to weave down the short-form video service back little more than six months. That conference was followed by one with staff to receive the news. The administration team is searching for options, including selling content. And it has 100 appearances — or the whole service should a buyer arise. (Struggles to shop it thus far have not obtained traction.)
Including what owed to bankers, it’s said about $350 million left. And also from the approximately $1.8 billion in money raised from a group of media companies. And investment firms, investment banks, and private backers.
What was the message that conveyed:Quibi
The process of bringing Quibi to a conclusion required to take several months, with subscribers getting notifications shortly.
In an extensive letter to “employees, investors and partners” posted online, Katzenberg and Whitman signed. And “Quibi was a huge idea. And no one required to make a success of it more than we did. Our downfall was not for lack of trying. And we’ve thought and consumed every option available to us.”
The service started in April, just as COVID-19 was beginning to upend the world. Its meltdown has set speeches swaying in the ultra-competitive Hollywood. And tech channels, as Quibi ranks amongst the priciest misfires of any entertainment-related startup.
Its failure will put about 200 workers out of work, punctuating a now grueling time for the entertainment area. Questions will wave around the future of its roster of “quick bite” programming. And from A-list inventors like Steven Spielberg, Guillermo del Toro. And Antoine Fuqua and also which investors will take the most precipitous losses.