Hedge fund Elliott Control Corp. is financing Eko’s patent lawsuit against streaming provider Quibi, The Wall Side Road Magazine reviews. Eko’s suit claims that Quibi stole industry secrets and that its “Turnstyle” function violates Eko’s patents. Turnstyle allows Quibi videos to play another way depending on the orientation —vertical or horizontal— of the viewer’s telephone, switching in real time.
Eko needs Quibi to prevent the usage of its era or license it and is suing for a initial injunction and damages. As a part of the financing arrangement, Elliott might get an fairness stake in Eko, according to the WSJ, even though it’s no longer clear how much cash is involved.
Quibi, the cellular video app that introduced closing month, raised just about $2 billion to provide “quick chunk” displays that last a max of 10 minutes. It filed a lawsuit against Eko an afternoon prior to Eko filed its go well with, asking a courtroom to seek out that Turnstyle doesn’t infringe Eko’s patent. Quibi advised The Verge in March that Turnstyle was its patented technology and that Eko’s claims have been “with out benefit.”
Elliott Control and Quibi didn’t immediately reply to requests for touch upon Sunday. An Eko spokesperson declined to remark.
Elliott Management is known for aggressive investor activism, backed by means of more than $FORTY billion in capital. the gang was once at the back of a recent push to interchange Jack Dorsey as CEO of Twitter. The Two sides reached an agreement in March that allowed Dorsey to remain as CEO however gave Elliott government Jesse Cohn a seat on Twitter’s board, and a seat on a board committee tasked with comparing a CEO succession plan for Twitter. Elliott additionally received a stake in AT&T in 2019, writing in a letter that the telco “suffered from operational and execution problems over the prior decade, for which the current leadership crew is responsible.” but it surely supported the recent appointment of AT&T COO John Stankey to CEO, in step with CNBC.
(Disclosure: Vox Media, which owns The Verge, has a care for Quibi to produce a Polygon Day By Day Crucial, and there have been talks a few Verge display.)
REPLACE: Would Possibly 3rd 6:40PM ET: Delivered details about Elliott’s function at AT&T
REPLACE Might 3rd 7:06 PM ET: Added that Eko declined to remark.