The media company once cost $5.7 billion
On May 1, The New York Times reported that Vice is reportedly on the verge of filing for bankruptcy. The company was once seen as a leader of a new wave of media companies.
The sources familiar with Vice’s operations told the Times that the media company is looking for a buyer. If it fails to find one, it will have to file for bankruptcy.
“Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning,” Vice said in a statement on Monday to the Times. “The company, its board, and stakeholders continue to be focused on finding the best path for the company.”
Vice has struggled financially despite investments from major companies like Disney and Fox. The company was once valued at $5.7 billion but was recently considered worth less than $1 billion.
Vice Media bankruptcy
Vice has already canceled its flagship show “Vice News Tonight.” It also laid off dozens of employees as part of a more extensive corporate restructuring.
The Guardian reports that Vice’s debt holder, Fortress Investment Group, provided a funding line of $30 million in February so that they could pay its overdue bills to vendors. In the same month, Nancy Dubuc, who became CEO in 2018 after co-founder Shane Smith, announced her unexpected departure.
If Vice is unable to reach a sale agreement, potential buyers are reportedly seeking a deal below $1bn. This would mean Vice could continue operating as usual during the bankruptcy process, as per The Guardian.
On May 5, 2023, The Wall Street Journal states that private equity firm Fortress Investment Group and other senior lenders were nearing a rescue agreement for the company.
Vice began as a Canadian alternative publication. It’s known for its edgy, youth-focused stories across various platforms. These include websites, films, podcasts, TV shows, and magazines.
Vice News reporters have covered significant events, such as the “Unite the Right” rally in Charlottesville in 2017. They also have more gonzo-style stories, such as NBA legend Dennis Rodman’s visit to North Korea.
Banner Image Paulo Correa
