Quibi Weighs Shutting Down as Problems Mount

Quibi is considering shutting itself down, WSJ reported Wednesday, citing people familiar with the matter, a move that points to a possible crash landing for a once-highflying entertainment startup that raised $1.75 billion in capital. From the report: The streaming service has been plagued with problems since it launched in April, facing lower-than-expected viewership, disappointing download numbers and a lawsuit from a well-capitalized foe. The service is aimed at mobile viewers, but the coronavirus pandemic forced would-be subscribers away from the kinds of on-the-go situations Quibi executives envisioned for its users. Quibi attracted blue-chip advertisers including Pepsi, Walmart and Anheuser-Busch, securing about $150 million in ad revenue in the run-up to its launch. Those deals came under strain earlier this year amid lower-than-expected viewership for Quibi’s shows, prompting advertisers to defer their payments. In recent weeks, Quibi hired a restructuring firm to evaluate its options, the people said. The firm recommended the options to the board of directors this week, laying out a list of options that included shutting the company down.

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