Vice to file for bankruptcy if a buyer not found as it becomes latest new media company to collapse
Vice is filing for bankruptcy if it cannot find a buyer as it becomes the latest new media company to collapse with dwindling revenue and interest
- Founded in 1994 in Montreal as a free magazine, Vice was valued at $5.7 billion in 2017, with 3,000 employees
- The company had a cable network, more than a dozen websites, two shows on HBO, an advertising agency, a movie studio, a record label, and a bar in London.
- Vice has struggled in recent years: Respected CEO, Nancy Dubuc, left in February and the company is now reportedly preparing for bankruptcy
Vice Media is preparing to file for bankruptcy, according to sources, after efforts to find a buyer for a company once valued at $5.7 billion seemed to go nowhere.
More than five companies have expressed interest in acquiring Vice, The New York Times reported on Monday, but the chance of a sale is considered increasingly slim.
Vice’s decline comes just over a week after BuzzFeed News announced its shutdown, and three months after Vox laid off 130 people, representing 7 percent of its workforce.
If a buyer is not found, Vice’s biggest debtor, Fortress Investment Group, could eventually take control of the company.
Vice would continue to operate normally and hold an auction to sell the company over a 45-day period.
Vice Media founder Shane Smith is pictured in 2015, as the company grew in strength. It is now in danger of going bankrupt
At its peak, Vice had 3,000 employees in offices around the world. Pictured is the media company’s outpost in Venice, California
Fortress has senior debt, which means it is first in line for a payout. Other investors – including Disney – have already written off their investments and are not getting their money back, sources tell the newspaper.
“Vice Media Group is conducting a comprehensive review of strategic alternatives and planning,” Vice said in a statement Monday.
“The company, board and stakeholders remain focused on finding the best path for the company.”
Founded in 1994 in Montreal as a free magazine, the company reached its peak in 2017 and has been seen as an avatar of new media.
Its founder, Shane Smith, rocked the establishment with his brash approach and provocative style, personally venturing to North Korea and cartel-controlled Mexican badlands to film risqué documentaries.
Shane Smith, founder of Vice, is seen with Jackass frontman Johnny Knoxville in August 2015
Vice had 3,000 employees around the world working on a cable network, more than a dozen websites, two shows on HBO, an advertising agency, a movie studio, a record label and a bar in London.
Headquartered in a hip Brooklyn enclave, it was hailed as the coolest place to work in the city.
But in recent years, the company has struggled to gain a foothold.
Smith resigned in March 2018 after The New York Times published an exposé of sexual misconduct within the company and The Wall Street Journal reported that Vice fell short of its $100 million annual revenue goal.
He was replaced as CEO by industry veteran Nancy Dubuc, but she left in February of this year, along with Jesse Angelo, the company’s global president of news and entertainment.
Bruce Dixon (left) and Hozefa Lokhandwala took over as co-CEOs of Vice in March
Dubuc was replaced by longtime business insiders Bruce Dixon and Hozefa Lokhandwala as co-CEOs.
At the time, the pair said: “We are both passionately committed to taking Vice’s brand, business and creative spirit into the future, and we are excited and grateful for this opportunity to continue to work closely with the board. and VMG’s exceptional management team.
“This is an era of tremendous change for media companies, and Vice’s unique news, entertainment and lifestyle content has never been more relevant.
“We look forward to building on the success as we chart the next exciting chapter for the company.”