Vice Media files for Chapter 11 protection under the US Bankruptcy Act, the latest digital media company to falter after a meteoric rise.
Vice said on Monday it had agreed to sell its assets to a consortium of lenders – Fortress Investment Group, Soros Fund Management and Monroe Capital – in exchange for US$225 million in credit. Other parties may also submit offers.
The announcement comes just weeks after the company announced it was canceling its flagship show. Vice News Tonight during a wave of layoffs — which was expected to affect more than 100 of the company’s 1,500 employees, according to the wall street journal. The company also said it would be ending its Vice World News brand, making Vice News its only brand in the world.
Several other outlets have announced closures and layoffs in recent months, including Gannett, NPR and The Washington Post. In April, BuzzFeed said it would shut down its digital outlet BuzzFeed News, as part of a cost-cutting drive by its parent company.
Digital advertising has fallen this year, reducing the profitability of big tech companies from Google to Facebook.
Vice Media’s roots date back to 1994, with the launch of Vice’s original punk magazine in Montreal. Vice quickly moved to New York and transformed into a global media company.
Over the years, Vice developed a reputation for straightforward journalism, which covered bold stories across the world. The media company’s assets also include film and television production, an in-house marketing agency, and brands such as Refinery 29 and Unbothered.
The company has struggled to turn around its earnings in recent years. During its financial crisis, Vice secured US$30 million in debt financing from Fortress Investment Group in February, reported the wall street journal.
In 2017, Vice was valued at US$5.7 billion. Now, however, most experts believe the company is only worth a fraction of that, according to the report. New York Times earlier this month.
Co-leaders Bruce Dixon and Hozefa Lokhandwala said the sale process will strengthen the company and position it for long-term growth, “preserving the kind of authentic journalism and content creation that makes VICE a brand of trust for young people and such a valuable partner to brands, agencies and platforms. »