Quibi is in advanced talks to sell its content catalog to Roku Inc.,
ROKU -1.98%
according to people familiar with the matter, as the short-form streaming service is ending its operations after an unsuccessful run.
Quibi, founded by film magnate Jeffrey Katzenberg, raised $ 1.75 billion with an ambitious plan to develop high-end mobile content. But the service, which launched in April, never got traction and Quibi said in October that it would be shut down.
Roku, which sells the most popular streaming media player in the US, is aggressively moving to content with its own ad-supported app, the Roku Channel, which offers movies and programs produced by other companies. An agreement with Quibi gives Roku a list of exclusive programming.
According to the terms discussed by the companies, Roku would acquire rights to Quibi’s library, the people familiar with the matter said. Financial terms of the proposed transaction could not be learned. The agreement may still fall apart.
Quibi’s programs, with episodes less than ten minutes long, feature stars such as Anna Kendrick, Liam Hemsworth and Sophie Turner. The programs include ‘Most Dangerous Game’, a show about manhunt, ‘Dummy’, a series about a talking doll and ‘Murder House Flip’, a combination of home improvement programs and real crime programs.
Quibi has entered into agreements with producers that Quibi can exhibit in their service for seven years. Some people familiar with the deal have said that some of the contracts indicate that the content cannot be broadcast on other platforms. One person familiar with Roku’s opinion said that the terms of the contract would not prevent the company from displaying the content on its service.
Write to Amol Sharma at [email protected], Benjamin Mullin at [email protected] and Cara Lombardo at [email protected]
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