Vice Media has filed for bankruptcy protection as it facilitates a sale after grappling with a significant shift in the company's fortunes.
The trailblazing media firm, widely known for its edgy and alternative stories, faced financial trouble in the past few years. It comes at a time wherein the overall landscape of digital media publishing has massively evolved.
Vice Media Files for Bankruptcy Protection
VENICE, CA - FEBRUARY 01: Vice Media offices display the Vice logo at dusk on February 1, 2019 in Venice, California. Vice Media announced it is cutting 250 jobs globally, about ten percent of its workforce.
According to The New York Times, Vice Media filed for bankruptcy protection on Monday, May 15. Despite the firm's bankruptcy filing, the operations of its businesses would remain up and running.
Besides its flagship new website, it runs another women-focused outlet, Refinery29, which the firm took over in 2019. On top of that, Pulse Films and Virtue, an ad agency, will continue to operate amid the recent bankruptcy filing.
The New York Times notes in its story that Vice was once valued at a staggering $5.7 billion. The top brass of Vice previously dreamt of selling the media outfit at an astronomical valuation or a debut on the stock market. But this time, Bloomberg reports that the Chapter 11 petition filed in the Southern District of New York shows that its assets and liabilities range between $500 million and $1 billion.
Vice, the Soros Fund Management, and Fortress Investment Group lenders have already secured a loan worth $20 million to continue operating the media outfit until a buyer comes in. Entrepreneur reports Vice has attracted considerable attention from numerous companies vying to acquire it. However, these potential buyers are less likely to pursue such a move.
The two top lenders are slated to acquire the company unless buyers arise. The recent filing comes weeks after Vice trimmed its workforce by letting go of roughly 100 employees in April. Apart from that, the flagship news show of the company, Vice News Tonight, had its final curtain call.
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Vice Media's Shift of Fortune
VENICE, CA - FEBRUARY 01: Vice Media offices display the Vice logo at dusk on February 1, 2019 in Venice, California. Vice Media announced it is cutting 250 jobs globally, about ten percent of its workforce.
Vice Media gained a devoted following by catering to a niche audience, specifically younger folks hungry for alternative news and cutting-edge content.
The New York Times notes that the rise of Vice is similar to other digital-media outlets, such as Vox Media, which owns The Verge, and BuzzFeed. The news outlet points out that these publications rely on the captivating rise of social media giants such as Facebook and Twitter.
Although these news websites easily attracted millions of users, the Times says they had problems with their profits later. Most of their income largely came from advertisements. However, these social networks are getting a huge bulk of it.
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