Streaming service Quibi is exploring a number of strategic choices together with a potential sale, in accordance with individuals aware of the state of affairs, as the corporate based by Hollywood mogul Jeffrey Katzenberg struggles to enroll subscribers in a aggressive online-video market.
Quibi, which launched its short-form, mobile-focused video service in April, can also be contemplating elevating extra money or going public by a merger with a special-purpose acquisition firm, or SPAC—primarily a blank-check firm that helps fund offers, the individuals mentioned. Quibi is working with advisers to overview its choices.
The overview course of is an indication of pressure. Quibi has struggled to meet its subscriber targets after making its debut within the throes of the coronavirus crisis. The corporate is on tempo to overlook its preliminary paid subscriber goal by a big margin, in accordance with an individual aware of the matter. Quibi can also be dealing with a patent lawsuit backed by a deep-pocketed foe and has disappointed advertisers with its lower-than-expected viewership.
Quibi declined to touch upon whether or not it’s pursuing a strategic overview. “Quibi has efficiently launched a brand new enterprise and pioneered a brand new type of storytelling and state-of-the-art platform,” an organization spokeswoman mentioned in a press release.