Quibi founders Jeff Katzenberg and Meg Whitman knew they had cracked the next big thing in Hollywood, knew it despite the fact that everyone else on the planet didn't seem to want it, knew they were going to revolutionize things because you knew the Gen Zers and other young people better than you did. In fact, nobody may have known, but everyone longed for lavishly funded short videos to watch on their phones so much that they saw them Could start in the middle of a pandemic where no one had to leave the room they were in TVs or laptops. Unfortunately, Quibi itself was the fastest bite of them all, an idea so good no one would pay to look at it, and so lucrative that none of the 700 million SPACs out there would be willing to sniff it.
Quibi, the short-form entertainment service for mobile devices, announced Wednesday that it will be closing a little over six months after its service started. The company announced in its announcement that it is making a proactive decision to preserve equity and will return the remaining funds to investors. Quibi made its investors and employees aware of the news on Wednesday afternoon.
"While we have the capital to continue operating for an extended period of time, we made the difficult decision of going out of business, returning cash to our shareholders and saying goodbye to our talented colleagues with grace," Whitman said in a press release . “We continue to believe that there is an attractive market for premium content in short. In the months ahead, we will work hard to find buyers for these valuable assets that they can take full advantage of. "
Even by their not particularly impressive standards, Whitman's tenure at Quibi was a disaster. The company was less timed than their campaign for the governor of California and arguably ended even more disgracefully. (Whitman lost 13 points in the 2010 race to a 72-year-old man who went back to his old job after 28 years of unsuccessful presidential elections. Quibi made $ 1.4 billion in just two years and gained roughly half as many subscribers (like Whitman a ten years ago.) Sorry Margaret: Looks like you should probably have got the Uber job.
Quibi Officially Announces It Will Shut Down (CNBC)