Vice Media information for chapter after wave of layoffs | Media information
The web firm, as soon as valued at $5.7 billion, is searching for chapter safety after it struggled to discover a purchaser.
Vice Media has filed for chapter safety, turning into the most recent digital media firm to reel from its meteoric rise.
On Monday, Vice stated it had agreed to promote its belongings to a consortium of lenders – Fortress Funding Group, Soros Fund Administration and Monroe Capital – in alternate for a $225 million mortgage. Different events will even be capable to submit bids.
The Chapter 11 chapter submitting got here weeks after the corporate introduced it was canceling its flagship Vice Information Tonight program and shedding staff. Greater than 100 out of 1,500 staff are anticipated to be laid off, experiences The Wall Road Journal. The corporate additionally acknowledged that it could cease utilizing the Vice World Information model, making Vice Information its solely model on this planet.
Bankruptcies registered beneath Chapter 11 of america Chapter Code are designed to guard a debtor firm from its collectors as a way to facilitate its sale or reorganization right into a worthwhile enterprise.
Monday’s announcement comes amid a wave of layoffs and media shutdowns, together with job cuts on the Gannett newspaper and publishing chain, Nationwide Public Radio and The Washington Submit. In April, BuzzFeed Inc introduced it was shutting down its Pulitzer Prize-winning digital media outlet BuzzFeed Information as a part of a father or mother firm cost-cutting program.
VICE Media LLC has filed for Chapter 11 chapter, a course of that would outcome within the sale of the corporate. https://t.co/C4Wvwai1zn
— VICE Information (@VICENews) Could 15, 2023
The present unsure financial local weather and the sharp drop in digital promoting gross sales have additionally damage the profitability of massive tech firms, from Google to Fb.
The roots of Vice Media date again to 1994 when the unique punk journal Vice was launched in Montreal. Vice quickly moved to New York and grew into a worldwide media firm.
Through the years, Vice has developed a popularity for candid journalism that has coated daring tales world wide. The media firm’s belongings additionally embrace movie and tv manufacturing, its personal advertising company, and types reminiscent of Refinery 29 and Unbothered.
Lately, the media firm has struggled to recoup earnings. Confronted with a monetary disaster, Vice obtained $30 million in debt financing from Fortress Funding Group in February, based on The Wall Road Journal.
Vice was valued at $5.7 billion in 2017. Specialists estimate that the corporate is now price solely a fraction of that quantity, The New York Instances reported this month.
Co-CEOs Bruce Dixon and Josef Lokhandwala stated the sale course of will strengthen the corporate and guarantee its long-term development, “thereby preserving the genuine journalism and content material creation that makes VICE such a trusted model for younger individuals and such a useful model.” associate of manufacturers, businesses and platforms.”