Soon after rumors started circulating that Roku was in the process of acquiring Quibi’s content, the company announced today that the deal has been closed and Quibi’s content will be broadcast exclusively on the Roku Channel.
Although the financial terms of the deal were not discussed in the statement sent by Roku and Quibi, internal sources in the Wall Street Journal say the deal cost Roku less than $ 100 million, with a source saying the price was “significantly less” than $ 100 million. Quibi raised $ 1.75 billion in funds before closing in December. Wedbush Securities media industry analyst Michael Pachter estimated the company’s worth at $ 500 million when it looked for potential buyers before closing.
What did Roku get for less than $ 100 million? The streaming platform acquired more than 75 programs and films that had previously premiered on Quibi, along with more than a dozen previously unreleased titles that will now debut on the Roku Channel.
Roku will hold exclusive streaming rights to the content for the remainder of Quibi’s two-year contract with content creators, so it will continue to have rights until 2027, a Roku spokesman told WSJ.
The agreement included content distribution rights for Quibi Holdings, LLC, but did not include Quibi technology, such as its Turnstyle feature, according to Deadline.
Roku shares rose 5% to $ 398.60 after news of the acquisition this morning.
Jess Barnes