Quibi explores strategic options
Quibi is exploring strategic options, including a sale less than six months after its launch.
The short-form video startup founded by Jeffrey Katzenberg and Meg Whitman is working with advisors on several options, including raising more money and going public through a merger with a special purpose acquisition company.
Quibi launched April 1 with nearly $2 billion in backing from Alibaba, Madrone Capital and every major Hollywood studio.
However, in spite of this investment and funding by the owners, the service struggled to gain traction with subscribers.
A spokesman added:
“Quibi has successfully launched a new business and pioneered a new form of storytelling and state-of-the-art platform. Meg and Jeffrey are committed to continuing to build the business in the way that gives the greatest experience for customers, greatest value for shareholders and greatest opportunity for employees.”