Quibi, the mobile-only video subscription streaming service, is shutting down, the company announced Wednesday. The company said the decision was made to preserve shareholder equity.
Why it matters: Quibi had struggled to hit its subscriber growth targets amid the global pandemic. The app launched six months ago.
Details: Quibi said in a statement that it intended to wind down its business operations and initiate a process to sell its assets over the next few months.
- "Following the Company’s wind down and satisfaction of all liabilities, the remaining funds will be returned to its investors as specified in the Company’s operating agreement," the statement said.
- The company noted that its board made the decision to shutter after exploring several strategic and financial options. (Reports previously suggested that the company was considering a full sale but failed to find a buyer.)
- Quibi says app subscribers will receive separate notifications regarding the final date of access to the platform.
The company blamed its woes on changes to the industry landscape and ongoing challenges. "[I]t was clear that the business would not be able to continue operating for the long-term on a standalone basis," the statement said.
By the numbers: The company raised a whopping $1.75 billion to get the app off the ground from Alibaba, as well as Hollywood behemoths like Walt Disney Company, NBCUniversal and AT&T's WarnerMedia....
- CEO Meg Whitman said in the statement that while the company had enough capital to continue operating for a significant period of time, "we made the difficult decision to wind down the business, return cash to our shareholders, and say goodbye to