Roku Buys Quibi's Content Distribution Rights

Roku Inc ROKU confirmed Friday a deal to acquire the exclusive global distribution rights to Quibi's suite of content for use on its ad-supported The Roku Channel.

What Happened: Roku was rumored to be in talks to acquire Quibi's content and Friday's confirmation puts an end to the speculation. As part of the deal, Roku will obtain the exclusive rights to Quibi's scripted series, alternative and reality programming, documentaries, among other content.

Roku also acquired content that has yet to air and more than a dozen new programs will launch for the first time on The Roku Channel at no extra charge to Roku users.

Quibi was founded by Hollywood icon Jeffrey Katzenberg and notable tech CEO Meg Whitman. It shut down in October, just six months after it launched. The short-form video streaming platform failed to attract a large enough subscriber base.

Why It's Important: Quibi's suite of 10-minute or fewer videos was priced at $4.99 per month. The company was expected to attract more than 7 million subscribers after its first year but was far short of projections at around 500,000 after six months.

Nevertheless, Roku pulled the trigger on an acquisition as it represented a "rare opportunity to acquire compelling new original programming that features some of the biggest names in entertainment," Roku Vice President Of Programming Rob Holmes said in the press release.

"Quibi championed some of the most original ideas and inventive storytelling, and I'm so proud of what I was able to create for the platform," said Veena Sud, creator, writer, director and executive producer of Quibi series "The Stranger."

What's Next: Quibi's content will become available to all Roku users at some point this year.

Roku's stock traded up 3.8% to $393.87 at publication time.