The Elliott Management Corp. hedge fund funds Eko’s patent lawsuit against streaming service Quibi. The Wall Street Journal Reports. Eko’s lawsuit alleges that Quibi has stolen business secrets and that his “turnstyle” feature violates Eko’s patents. With Turnstyle, Quibi videos can be played differently depending on the orientation (vertical or horizontal) of the viewer’s phone and switched in real time.
Eko wants Quibi to stop using or licensing his technology and is suing for injunction and damages. According to the financing agreement, Elliott would receive a stake in Eko WSJHowever, it is not clear how much money it is.
Quibi, the mobile video app launched last month, raised nearly $ 2 billion to produce “quick bite”
Eko and Quibi didn’t immediately respond to requests for comments on Sunday. Elliott Management also did not respond to a request for comment.
Elliott Management is known for aggressive investor activism backed by over $ 40 billion in capital. The group recently took the initiative to replace Jack Dorsey as CEO of Twitter. The two sides reached an agreement in March that allowed Dorsey to remain as CEO, but Elliott manager Jesse Cohn granted a seat on Twitter’s board of directors and a seat on a board of directors committee that evaluated a CEO’s succession plan for Twitter was commissioned.
(Disclosure: Vox Media owns it The edgehas a deal with Quibi to produce one Polygon Daily Essential, and there were discussions about a edge Show.)