Reports Stack News and Updates
Vice Media Group, which was once a digital media sensation, filed for bankruptcy protection on Monday due to years of financial struggles. Following the filing, a group of Vice’s lenders, including Fortress Investment, Soros Fund Management, and Monroe Capital, plans to acquire the company.
Over the past few months, the renowned digital media pioneer, which included sites such as Vice and Motherboard and was previously valued at $5.7 billion, has been undergoing restructuring and job cuts within its global news business.
On Monday, Vice Media announced that the consortium of lenders, including Fortress Investment, Soros Fund Management, and Monroe Capital, is set to acquire the company through a credit bid of $225 million for most of its assets, as well as assuming significant liabilities.
Amid a slow economy and weak advertising market, Vice is among several digital media and technology companies that have had to restructure this year. Buzzfeed also announced significant layoffs last month and shut down its news division.
Started as a small magazine in Canada in 1994, Vice grew into a global brand with a focus on youth-oriented content and a strong presence on social media. In recent years, however, the company faced financial challenges due to the dominance of tech giants like Google and Meta in the global advertising market.
Vice has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York to facilitate its sale. If approved, the bankruptcy filing will allow other parties to make bids for the company. Credit bids will also be accepted, which will allow creditors to exchange secured debt for company assets instead of paying cash.
Vice Media Group announced on Monday that a group of its lenders, including Fortress Investment, Soros Fund Management, and Monroe Capital, will provide a $225 million credit bid for most of its assets along with significant liabilities. As part of the sale process, the consortium has committed to providing $20 million in cash to keep Vice’s operations running. The sale is expected to be completed within two to three months.
Vice stated that its multiple media brands across different platforms, such as Vice News, Vice TV, Pulse Films, Virtue, Refinery29, and i-D, will continue to function, and that its international entities and Vice TV’s partnership with A&E are not included in the Chapter 11 application.
In a statement, Vice Co-CEOs Bruce Dixon and Hozefa Lokhandwala said that the sale process will improve the company and position it for long-term growth. They added that with new ownership, a simplified capital structure, and the ability to operate without legacy liabilities, the business will be strengthened.
