Streaming Service Roku Considers Acquisition of Fading Quibi's Assets

Streaming Giant Roku in Talks to Acquire Quibi's Fading Assets

In a surprising turn of events, streaming giant Roku is reportedly in advanced negotiations with Quibi's liquidators. The discussions revolve around the potential acquisition of Quibi's substantial catalog of content.

Launched just six months ago, Quibi operated for a brief period before shutting down due to various factors. The pandemic disrupted Quibi's initial plan of mobile-first shows, affecting the viewership significantly. Quibi's shows, which feature 10-minute episodes, similar to high-production-value YouTube clips, failed to attract a significant audience.

Despite the initial setbacks, Quibi raised a total of $1.75 billion for its launch. The company had approximately $750 million in cash on hand, and it is intended to return $350 million to investors, with an unknown amount set aside for employee severance and outstanding production agreements.

The acquisition of Quibi's content could potentially boost the Roku Channel's appeal. Roku, which doesn't produce original content, has struggled to gain traction with the Roku Channel. Quibi's content, if integrated successfully, could serve as a marketing opportunity for the Roku Channel.

However, it's important to note that the deal between Roku and Quibi's liquidators could still fall through. The long-term shelf life of Quibi's content remains uncertain, and the details about the amount of cash Roku has in mind for the acquisition are not disclosed.

The Roku Channel has become an important factor in negotiations with media companies, and it is unclear who is negotiating on behalf of Quibi's liquidators. The pandemic severely reduced the amount of time people spent commuting, impacting Quibi's proprietary video tech, and the shows produced by Quibi are often compared to the Fyre Fest of streaming services.

As the negotiations continue, it remains to be seen whether Roku can successfully acquire and integrate Quibi's content into the Roku Channel, and whether this move will help Roku gain the traction it has been striving for.