Vice Media could be saved from bankruptcy by a consortium of investors, including the fund of George Soros and Fortress – already a major shareholder.
The deal would value Vice at $400 million, The Wall Street Journal reported Friday — a far cry from 2017’s $5.7 billion valuation.
It was reported on Monday that the company was gearing up to file for bankruptcy, but mmore than five companies had expressed interest in acquiring it, The New York Times said.
Friday’s deal would leave existing management in their roles, the Journal reported, and vice-founder Shane Smith would retain some role. Smith currently serves as executive chairman of Vice Media.
Senior lenders include Fortress Investment Group, a New York-based fund led by CEO Peter Briger, and Soros Fund Management, founded in 1970 by billionaire investor George Soros, now 92.
A consortium including Fortress Investment Group, led by CEO Peter Briger (left) and George Soros (right), may be willing to buy Vice for $400 million
At its peak, Vice had 3,000 employees in offices around the world. Pictured is the media company’s outpost in Venice, California
Vice Media founder Shane Smith is pictured in 2015, as the company grew in strength. It now faces an uncertain future
Other shareholders would be wiped out — including private equity firm TPG Group, Sixth Street Partners and media magnate James Murdoch, The Journal reported.
The drama at Vice comes just over a week after BuzzFeed News announced its closure, and three months after Vox laid off 130 people, or 7 percent of its workforce.
Vice is preparing for a court-supervised sale in a Chapter 11 bankruptcy, the Journal reported, which could be filed as early as next week
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.
“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.”
They did not respond to Friday’s report.
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 a revelation 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.”
Vice explored a sale earlier this year, but was hurt by Greek broadcaster Antenna Group’s decision to end a multimillion-dollar contract to buy news content for years.
The contract with Antenna was seen as a lifeline for the ailing news department.
The contract termination meant that Antenna, long considered a potential buyer for Vice, would ultimately not step in to acquire the company.