Quibi has officially shut down just six months after launching and having raised almost $1.8B from investors. The announcement follows yesterday’s rumors that founder Jeffrey Katzenberg had tried to get both NBC and Facebook to acquire the platform’s content.
- The company is reportedly seeking to return $350M of the $1.75B it had raised to investors. While all investors will lose money, those who placed their bets early on will be prioritized. Contributors included Alibaba, Disney, Viacom, Liberty Global, Goldman Sachs, JPMorgan and the Walton family, and large Hollywood studios.
- The company’s plan to secure 20 MILLION subscribers and $2B in revenue over five years came to naught after the pandemic eliminated the need for short-form videos, which are best viewed e.g., during a commute or in a line for coffee.
- Coincidentally, Joe Biden’s campaign is reportedly considering Quibi CEO Meg Whitman for a cabinet post.
- Even More: Read Katzenberg’s and Whitman’s open letter announcing the closure.
From Twitter: a16z’s Andrew Chen had this to say about people celebrating the company’s failure on the grounds that it was not started by scrappy engineers with a dream: