Hedge fund Elliott Administration Corp. is financing Eko’s patent lawsuit towards streaming service Quibi, The Wall Street Journal reports. Eko’s go well with claims that Quibi stole commerce secrets and techniques and that its “Turnstyle” characteristic violates Eko’s patents. Turnstyle permits Quibi movies to play in a different way relying on the orientation —vertical or horizontal— of the viewer’s cellphone, switching in actual time.
Eko needs Quibi to cease utilizing its know-how or license it and is suing for a preliminary injunction and damages. As a part of the financing association, Elliott would get an fairness stake in Eko, in line with the WSJ, although it’s not clear how a lot cash is concerned.
Quibi, the cell video app that launched final month, raised almost $2 billion to provide “fast chew” reveals that final a max of 10 minutes. It filed a lawsuit against Eko a day earlier than Eko filed its go well with, asking a courtroom to seek out that Turnstyle doesn’t infringe Eko’s patent. Quibi instructed The Verge in March that Turnstyle was its patented know-how and that Eko’s claims have been “with out benefit.”
Eko and Quibi didn’t instantly reply to requests for touch upon Sunday. Elliott Administration additionally didn’t reply to a request for remark.
Elliott Administration is understood for aggressive investor activism, backed by greater than $40 billion in capital. The group was behind a latest push to interchange Jack Dorsey as CEO of Twitter. The 2 sides reached an agreement in March that allowed Dorsey to stay as CEO however gave Elliott government Jesse Cohn a seat on Twitter’s board, and a seat on a board committee tasked with evaluating a CEO succession plan for Twitter. Elliott additionally acquired a stake in AT&T in 2019, writing in a letter that the telco “suffered from operational and execution points over the previous decade, for which the present management workforce is accountable.” However it supported the latest appointment of AT&T COO John Stankey to CEO, in line with CNBC.
(Disclosure: Vox Media, which owns The Verge, has a take care of Quibi to provide a Polygon Each day Important, and there have been talks a couple of Verge present.)
UPDATE: Might third 6:40PM ET: Added details about Elliott’s position at AT&T