It’s safe to say that Quibi didn’t launch at the best time, providing a mobile-based app for people on the go just as coronavirus restrictions were put in place, forcing most of the world to stay at home.
Now it looks like the mobile video startup could be forced to close down just six months after its launch after trying to sell its assets – but failing to find a buyer.
A report from the Wall Street Journal revealed that founder Jeffrey Katzenberg called investors to let them know Quibi would be closing down. The news comes after a restructuring firm recommended they cease operations.
Although this wasn’t the only potential recommendation, the fact this was clearly seen as the best option will be a blow to Katzenberg, after his startup raised $1.75 billion in funding from major companies such as WarnerMedia, NBCUniversal and Disney.
The news will impact around 200 employees, who will be told the news officially imminently. The platform currently has around 500,000 paying customers, but Katzenberg’s pitch to Apple, WarnerMedia and Facebook was rejected.