Vice Media Group, the parent company of media websites Vice and Motherboard, is reportedly preparing to file for bankruptcy. This news comes amid a slew of layoffs and closures in the media industry, including BuzzFeed's announcement that it will shutter its news division.
Vice has received interest from five companies and may consider a sale to avoid bankruptcy. However, if it does file for bankruptcy, debt-holder Fortress Investment Group could end up controlling the company.
The company's potential bankruptcy comes at a challenging time for the media industry, with several other media and technology firms downsizing due to a weak advertising market and a challenging economy. Vice recently cancelled its popular TV program Vice News Tonight and announced a broader restructuring that would result in job cuts across its global news business.
Vice was once valued at $5.7 billion and was part of a group of fast-rising digital media ventures that courted millennial audiences. The company rose to prominence alongside its provocative co-founder, Shane Smith. However, one of its other co-founders, Gavin McInnes, is now better known as the founder of the far-right group Proud Boys, whose leaders are facing seditious conspiracy charges for their actions during the January 6 insurrection in Washington.
Possible sale or bankruptcy filing
According to a New York Times report citing people with knowledge of Vice's operations, the company is preparing to file for bankruptcy. It has also received interest from five companies that may consider a sale to avoid bankruptcy.
The report added that in the event of a bankruptcy, Vice's debt holder Fortress Investment Group could end up controlling the company. However, the company is expected to continue operating normally in the event of a bankruptcy filing.
Industry challenges and layoffs
The potential bankruptcy filing hits at a challenging moment for the industry, as several other media and technology firms have had to downsize in recent months due to a challenging economy and a weak advertising market.
BuzzFeed recently announced that it would shutter its news division, and Vice Media canceled its popular TV program Vice News Tonight and announced a broader restructuring that would result in job cuts across its global news business.
Vice's rise and its co-founders
Vice was once part of a group of fast-rising digital media ventures that commanded rich valuations as they courted millennial audiences. In 2017, the company was valued at $5.7 billion. It rose to prominence alongside its provocative co-founder, Shane Smith, who built his media empire from a single Canadian magazine. However, one of its other co-founders, Gavin McInnes, is now better known as the founder of the far-right group Proud Boys.
