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Roku Acquires Quibi 📺
Well it's official
"Roku, Inc. (NASDAQ: ROKU) announced today that The Roku Channel will become the exclusive place to stream more than 75 premium shows and documentaries that Quibi created in conjunction with Hollywood’s leading studios and production companies. Roku acquired the exclusive global distribution rights to Quibi’s award-winning shows and will make the content available for free on an ad-supported basis in 2021 to all Roku users."
💵Price Paid
An official price paid for Quibi's catalog was not disclosed by Roku, but it is rumored to have been less than $100M. This is just slightly below the $1.75 billion that Quibi raised from private market investors. Ouch.
ðŸ’Thoughts On The Acquisition
I don't think Quibi was wrong about consumer's interest/demand for short format shows, but they were wrong about the mobile only distribution. If Quibi launched a Fire Stick and Roku app I think they would still be in business today.
How does Quibi's content catalog fit into Roku's business model?
Quibi's content catalog should help to drive further engagement and consumer knowledge of The Roku Channel ("TRC"). All 75 of the Quibi shows will be added to TRC and will be available to stream for free on an ad-supported basis. Roku believes there is a strong market for AVOD (Ad-supported Video On Demand) and their acquisition of Quibi's catalog further places their bet on this model.
I'm exited to see how this acquisition will play out over the next few years. Will Roku see an increase in TRC usage? Will Roku further push into the streaming and original content space?
Would love to hear from others who are long $ROKU or have an interest in the company. 👇
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