Mobile streaming platform Quibi is looking to be acquired or otherwise strategically restructure ownership according to the Wall Street Journal. Quibi was founded by Hollywood legend Jeffrey Katzenberg who remains Chairman of the Board. Former Hewlett Packard Enterprise head Meg Whitman is the Chief Executive Officer.
Quibi, which launched its short-form, mobile-focused video service in April, is also considering raising more money or going public through a merger with a special-purpose acquisition company, or SPAC—essentially a blank-check company that helps fund deals, the people said. Quibi is working with advisers to review its options.
Quibi has struggled to meet its subscriber targets after making its debut in the throes of the coronavirus crisis. The company is on pace to miss its initial paid subscriber target by a large margin, according to a person familiar with the matter. Quibi is also facing a patent lawsuit backed by a deep-pocketed foe and has disappointed advertisers with its lower-than-expected viewership.Wall Street Journal
The company says that both Jeffrey Katzenberg and CEO Meg Whitman “are committed to continuing to build the business in the way that gives the greatest experience for customers, greatest value for shareholders and greatest opportunity for employees.”