Quibi, the short-form entertainment service for mobile devices, announced on Wednesday that it will shut down, just over six months after its service launched.
The company, which was founded by Hollywood producer Jeffrey Katzenberg and former HP CEO Meg Whitman, raised $1.75 billion ahead of its launch in April. The app features short-form news and entertainment videos (or “quick bites”) running 10 minutes or less in length.
It attracted top Hollywood stars for its shows too, such as Chrissy Teigen and Idris Elba. Investors in Quibi included legacy media companies like Disney, Comcast’s NBCUniversal, and AT&T’s WarnerMedia.
The company said in its announcement that it’s making a proactive decision to preserve shareholder equity, and will return the remaining funds to investors. Quibi alerted its investors and employees of the news Wednesday afternoon.
“While we have enough capital to continue operating for a significant period of time, we made the difficult decision to wind down the business, return cash to our shareholders, and say goodbye to our talented colleagues with grace,” Whitman said in a press release. “We continue to believe that there is an attractive market for premium, short-form content. Over the coming months, we will be working hard to find buyers for these valuable assets who can leverage them to their full potential.”