Vice Media, known for its websites Vice and Motherboard, filed for bankruptcy protection last month, marking the end of a period of financial challenges and executive departures. The company had been exploring options for selling itself before the bankruptcy filing.
The consortium led by Fortress Investment Group, along with investors such as Soros Fund Management and Monroe Capital, submitted a bid of $350 million for Vice Media’s assets and some of its liabilities. The offer was made in the form of a credit bid. The sale was approved by the bankruptcy court, and Vice’s co-CEOs expressed their belief that it represents the best path forward for the company.
Vice Media’s bankruptcy filing came after it announced the cancellation of its flagship program Vice News Tonight and laid off employees. The company owed $474.6 million to the Fortress-led lender group at the time of the bankruptcy filing. It borrowed an additional $10 million during the bankruptcy proceedings.
The challenges faced by Vice Media and other internet media publications include difficulties in growing ad-dependent revenue, with platforms like Facebook, Instagram, and Google dominating digital advertising spending. The COVID-19 pandemic further suppressed the advertising market, adding to the challenges faced by online publishers.
Vice Media, which was valued at $5.7 billion at its peak in 2017, had investors such as Lupa Systems, TPG, Technology Crossover Ventures, and Antenna Group. The sale to the Fortress-led consortium is expected to provide Vice Media with stability and a fresh start.
The media industry has witnessed layoffs and closures in recent times, with companies such as Gannett, National Public Radio, and BuzzFeed Inc. making job cuts or shutting down certain outlets as part of cost-cutting measures.
