Shortly after rumors started spreading that Roku was acquiring Quibi content, the company announced today that the deal has been done and that Quibi content will be streaming exclusively on The Roku Channel.
Although the financial terms of the deal were not discussed in the statement issued by Roku and Quibi, the Wall Street Journal said the deal cost Roku less than $ 100 million. . Quibi raised $ 1.75 billion in funding before striking out in December. Michael Pachter, media industry analyst at Wedbush Securities, estimated the company’s value at $ 500 million when he looked at potential buyers before ending it.
What did Roku get for less than $ 100 million? The streaming platform has acquired more than 75 programs and movies that have already debuted on Quibi, along with more than a dozen titles that have not yet been released, which are now appearing on The Roku Channel.
Roku has exclusive streaming rights to the content for the remainder of the two-year Quibi agreement with content creators, and will continue to have rights until 2027, a Roku spokesman told WSJ.
The agreement includes rights to distribute content from Quibi Holdings, LLC, but does not include Quibi technology, such as the Turnstyle feature, according to Deadline.
Roku shares rose 5% to $ 398.60 after the news of the acquisition this morning.
Jess Barnes