Roku said Friday that it had acquired the right to stream Quibi's programs and will make the content available free to stream in 2021 on an ad-supported basis in 2021 for all its users.
Shares of the Los Gatos, Calif., company at last check were climbing 5.5% to $400.
Terms of the Quibi deal were not disclosed. Roku is paying less than $100 million for the Quibi library, people familiar with the matter told The Wall Street Journal.
Quibi's content includes Emmy award-winning scripted series, alternative and reality programming and documentaries featuring stars such as Idris Elba, Kevin Hart, Liam Hemsworth, Anna Kendrick, Nicole Richie, Chrissy Teigen, and Lena Waithe.
In addition to the full range of titles that had premiered on Quibi, more than a dozen new programs will debut on the Roku Channel, the company said.
“The most creative and imaginative minds in Hollywood created groundbreaking content for Quibi that exceeded our expectations," Quibi Founder Jeffrey Katzenberg said in a statement, according to Variety.
"We are thrilled that these stories, from the surreal to the sublime, have found a new home on the Roku Channel.”
The Wall Street Journal had reported on Monday that Roku was in advanced talks to buy Quibi's content catalog as the short-form streaming service wound down its operations.
Quibi had raised $1.75 billion with a plan to develop high-end content for mobile phones. The company, led by Katzenberg and Chief Executive Meg Whitman. spent upward of $6 million per hour of produced content on short-form originals.
But the service, which launched in April, never gained traction, mostly because its on-the-go format didn't mesh with the pandemic's stay-at-home activity.
Separately, Roku's price target was raised to a Wall-Street-high $420 from $260 by Rosenblatt Securities analyst Mark Zgutowicz, who cited the media-streaming platform's improving dynamics for average revenue per user.
Needham analyst Laura Martin had earlier raised her price target on Roku to $400 from $315, while keeping a buy rating on the shares.