Vice Media, a company once valued at nearly $6 billion, will reportedly file for bankruptcy in the coming weeks.
Reports suggest that Vice Media, a popular digital media company known for its alternative news and edgy content, may be facing bankruptcy after years of success in the industry. The company has been in business for nearly 30 years and has had several major investors, including Disney, over the years. According to sources familiar with the matter, Vice is preparing to file for bankruptcy in the coming weeks.
Despite efforts to find a buyer to avoid bankruptcy, the likelihood of a buyer stepping forward is rapidly dwindling, with only five companies reportedly showing interest. This comes as a blow to Vice, which has been struggling financially, losing money and having to lay off employees repeatedly. Vice World News, the global reporting initiative covering world conflict and human-rights abuses, was closed down just last week.
Founded in Montreal over 20 years ago, Vice Media grew into a global media enterprise with a film studio, advertising agency, and bureaus in cities worldwide. The company’s valuation reached an impressive $5.7 billion in 2017 after a funding round by private-equity firm TPG. However, the valuation has since dwindled, leading to the possibility of bankruptcy.
Fortress Investment Group, Vice’s largest debt holder, could end up taking control of the company if it files for bankruptcy, according to one source. Unlike other investors such as Disney and Fox, Fortress has senior debt, meaning it would be paid first if the company were sold. As a result, Disney, which has already written off its investments, is unlikely to receive any returns.
Despite its reputation for edgy content and daring reporting, Vice has struggled to turn a profit over the years. Co-founder Shane Smith established the company’s reputation with his daring reporting from dangerous locations such as North Korea. SBS Viceland in Australia has also been affected by the news, with its 45-minute Vice News Tonight program being scrapped for good this week. In a statement, Vice said that the company and its stakeholders are focused on finding the best path forward.
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