Elliott Management and Anti-Snowbird founder Paul Singer must be a little surprised that the short-form streaming video service Quibi is collapsing so quickly. After all, he thought it was a pretty good idea. Probably not that little bit over five minute long videos, or the actual videos themselves, as nobody thought they were all that good. But this turnstyle technology that made the videos work seamlessly in both portrait and landscape modes was great. The only problem, as Singer sees it, is that it has already belonged to someone else, someone Elliott is involved in and someone whose legal bills Elliott pays.
While Singer may not complain about the loss of “Dummy” or the restart of “Fugitive” – again because nobody is – he certainly laments his ability to make Quibi pay for what he believes is stolen. Or not, since he has other plans for the money Quibi wants to return to his investors and can be patient if needed.
Following the closure announcement, Eko asked Quibi for assurances that the company would not sell the Turnstyle technology and save cash for a payout if Eko’s lawsuit prevailed. Richard J. Eichmann, an economist and valuation analyst hired by Eko, said in a statement filed in court that he believed Quibi should reserve at least $ 96.5 million to cover the non-exclusive use of the property in this case At issue to explain allegedly stolen intellectual property. “The remainder of the $ 101.9 million Eko plans to put on hold is to cover legal costs and potential interest.”
The Quibi opponent asks the court to freeze some of the streaming service’s assets [WSJ]