Vice is reportedly preparing for bankruptcy after charming the largest entertainment companies like Disney and Fox with investments. The company failed to look for a buyer despite having more than five companies that have expressed their interest to acquire the digital-media group.
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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.
Filing for Bankruptcy
As its assets continue to struggle for years to find growth, Vice Media prepares to file for bankruptcy. According to a report from The New York Times, this would mark a major fall for a once-popular media group valued at $5.7 billion during its peak in 2017. The filing could come in the upcoming weeks.
This decision from the company comes after struggling to look for a buyer of the company to avoid the declaration of bankruptcy. Although more than five companies have expressed their interest in the company, the chances of continuing this acquisition are growing increasingly slim.
In the event of bankruptcy, the largest debtholder of the company Fortress Investment Group could end up managing the media group as it will become in pole position as the most possible acquirer. Vice would still continue operating normally, just with different management and leadership.
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Vice Media Group includes assets like Vice News, Vice TV, Refinery 29, and Motherboard, which cater to younger audiences. Deadline reported that the company began as a punk magazine, based in Montreal and founded by Shane Smith, Suroosh Alvi, and Gavin McInnes in 1994.
Investors include Fox Corp. and Walt Disney Inc, which are both known to get their investments in return. After investing hundreds of millions in the company, Disney once explore acquiring the company in 2015 for more than $3 billion but never pushed through.
Early Signs
As years pass by, the company become a global media company with different assets like movie studios, ad agencies, HBO shows, and bureaus in world capitals. But Vice has struggled for years to find its growth with these assets as they implement several strategies to keep up with its costs.
This comes as the company struggles with financial difficulties and top executive departures. Just last week, Bloomberg reported that the company announced a new restructuring plan for its news division by ending its Vice World News Tonight show, with its staff being laid off.
Chief Executive Officer Nancy Dubuc departed from the company last year, replaced by Bruce Dixon and Hozefa Lokhandwala. Aside from Dubuc, Global President of News and Entertainment Jesse Angelo also resigned from his position to launch his own production firm.
As per the company's spokesperson, "Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning. The company, its board, and stakeholders continue to be focused on finding the best path for the company."
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