Vice Media, In order to avoid filing for bankruptcy, has been hunting for a buyer to buy the business over the past six months. In the case of Vice’s bankruptcy, five companies are reportedly interested in buying the company. However, those with knowledge of the situation claim that the likelihood of Vice being purchased by another company is low.
The parent business of the news websites Vice and Motherboard, Vice Media Group, is reportedly close to declaring bankruptcy, according to The New York Times. The filing may occur in the upcoming weeks, according to The Times, which also cited two people with knowledge of the situation.
In the event that the business declares bankruptcy, Fortress Investment Group, a debtor, may come to control it. According to a person familiar, the report also mentioned that other Vice investors, such as Disney and Fox, would not receive investment returns.
If the company files for bankruptcy, normal business operations are anticipated to continue.
Vice’s Valuation Tumbles
After receiving a $450 million investment from private equity firm TBG in 2017, Vice’s valuation reportedly peaked at $5.7 billion, before falling to roughly $3 billion in 2021. According to The Times, Vice has been searching for a potential buyer, and as a result, its worth has decreased to a “fraction” of what it was in 2017.
In 1994, Shane Smith, Gavin McInnes, and Suroosh Alvi launched the business in Montreal. The business initially published Vice magazine before becoming well-known online. With offices in distant international capitals, an HBO show, a movie studio, and an advertising agency, it evolved into a worldwide media conglomerate over time.Â
The announcement that BuzzFeed News was closing its news division as part of cost-cutting measures was made just a few days prior to the news release. The tech sector slump and the weak stock market were among the problems listed by the company, and CEO Jonah Peretti acknowledged some responsibility for the closure.
Media Sector Struggles
A challenging economy and a sluggish advertising market have forced a number of other media and technology companies to shrink recently, making this potential bankruptcy difficult for the sector.
This month, BuzzFeed announced that it would close its news division, which rose to fame for its wry and inquisitive reporting but ultimately failed due to the difficulties of its digital-first business model.
Following years of financial struggles and executive departures, Vice Media announced last week that it would end its well-liked TV programme Vice News Tonight as part of a larger restructuring that would result in job cuts across the digital media company’s global news business. According to news sources, the restructuring would result in the layoffs of over 100 workers.
Vice was one of a number of quickly growing digital media companies that formerly attracted high valuations while courting millennial consumers. The corporation was worth $5.7 billion in 2017.
Along with its controversial co-founder Shane Smith, who established his media empire from a single Canadian magazine, it gained notoriety. Gavin McInnes, one of Vice’s other co-founders, is now more known for having founded the Proud Boys, a far-right organisation whose leaders are currently being charged with seditious conspiracy for their participation in the January 6 uprising in Washington.
Media Layoffs Continue
Insider, a well-known news source, stated this week that 10% of its workers, including staff writers, would be let go.
The layoffs show how the media industry is still adjusting to the weak economy. According to CEO Jonah Peretti, BuzzFeed.com is also closing its Pulitzer Prize-winning news division. The media company announced that it is starting the process of liquidating BuzzFeed News and decreasing its employees across the business, editorial, tech, and admin departments by about 15%.
In recent months, staff members at a number of media organisations, including ABC News, NPR, Vox Media, CNN, and others, have been let go.
