Qibi Holdings LLC is considering closing itself, according to people familiar with the matter, a move that points to a potential crash landing for a one-time high-end entertainment startup that raised capital 1.75 billion in capital.
The streaming service has been plagued by problems since it began in April, facing lower-than-expected viewers, disappointing download numbers and being sued by a well-capitalized enemy.
The service is aimed at mobile viewers, but the coronavirus epidemic will force customers to stay away from situations imagined by QB officials for its users under mandatory conditions.
Quibi attracted blue-chip advertisers, including PepsiCo Inc.,
Walmart Inc.
And Anheuser-Bush Inbew SA,
Received approximately million 150 million in advertising revenue in the run-up to its launch. Those deals were strained earlier this year among less-than-expected viewers for Qibi’s shows, prompting advertisers to avoid their payments.
In recent weeks, Qibi has hired a restructuring panel to evaluate its options, people said. The pay firm recommended options to the board of directors this week, putting out a list of options to close the company.
It is unknown at this time what he will do after leaving the post.
Some said Qibi would call on its investors later on Wednesday.
Earlier in the day, Quibi founder Jeffrey Katzenberg told people in the media industry that he might have to close the company.
The decision to hire the reorganization firm came after it began the process of selling the company, according to a report in the Wall Street Journal. Qibi put on suitors including comcast Corp
On the NBC Universal sale, according to people familiar with the matter, but buyers will be disconnected by the fact that Qibi does not own many of the shows put on its platform.
NBC Universal declined to comment.
If Quiby is about to close, it’s a disappointing turn of events for Mr. Katzenberg, who introduced the streaming service as a new revolutionary in video-streaming wars. The service offers shows in 5– to 10-minute “chapters” that will fit the smartphone screen, targeting subscribers who want to be entertained in a hurry.
Mr. Katzenberg and Chief Executive Mag Whitman raised about 1. 75 1.75 billion from high-profile investors, including Walt Disney. Co.
, NBC Universal and AT&T Inc.
WarnerMedia. The service shared the original show with stars such as Anna Kendrick, Christoph Waltz and Liam Hemsworth, who received mixed reviews.
One of Qibi’s biggest selling points is its library show, which can only be viewed on users’ mobile phones. The facility proved responsible when the epidemic struck, sending viewers to their homes to watch shows on TV. Qibi eventually allowed subscribers to watch his show on his TV.
After spending heavily on original programming it is struggling to attract customers. He said the epidemic has been the primary cause of his struggles, but his-4.99 a month subscription fee and already crowded market are also seen as factors in his troubles.
Qibi Video Technology Company is also fighting a legal battle with Echo over who should be credited with the company’s video-streaming technology. The lawsuit, filed earlier this year, is ongoing.
Write to Benjamin Mullin at [email protected]
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