A consortium of Vice’s lenders, which includes Fortress Investment and Soros Fund Management, is looking to retrieve the firm following the filing.
The digital media numero uno, once valued at $5.7 billion and known for sites like Vice and Motherboard, had been streamlining and cutting job opportunities across its global news business over recent months.
The group is prepared to buy the company, giving $225 million in the form of a credit bid for the majority of Vice Media’s assets, as well as a few critical liabilities, the company stated on Monday.
Vice is one of several digital media and technology companies that have been forced to restructure this year due to a slowing economy and a dismal advertising environment. Buzzfeed had previously disrupted its news division and announced massive layoffs.
Established in 1994 in Canada as a fringe magazine, Vice expanded globally with youth-related content and a prominent social media presence. The company struggled financially for several years, while tech behemoths like Google and Meta ate up worldwide ad money.
In addition, in order to facilitate the sale, Vice filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York. It is estimated that if the application is approved, other parties who are willing to invest in the company will be able to bid. Credit bids let creditors trade secured debt for firm assets instead of making cash payments.
The consortium’s bid involved a commitment of $20 million in cash to enable Vice’s operations to continue throughout the auction and sale process.
“The process is anticipated to conclude within two to three months,” the company said.
Vice said its various multimedia platforms, which include Vice News, Vice TV, Pulse Films, Virtue, Refinery29, and i-D, will continue to operate, while its international organisations and Vice TV’s joint venture with A&E will not be considered as part of the Chapter 11 filing.
Bruce Dixon and Hozefa Lokhandwala, Co-CEOs of Vice Media, said in a statement that the sale process will “strengthen the company and position VICE for long-term growth.”
“We will have new ownership, a simplified capital structure, and the ability to operate without the legacy liabilities that have been burdening our business,” they added.
- Published By Team Genuine Reporter