Amidst slowing economic growth and a softening advertising market, Vice Media has filed for bankruptcy.
Vice stated that its group of sites, including Munchies and Refinery29, will continue their publishing activities throughout the Chapter 11 bankruptcy process. The sites will undergo a transition of ownership as this process unfolds.
According to the statement, the bankruptcy announcement will enable the sale of Vice to its primary lenders, Fortress Investment Group and Soros Fund Management. This acquisition of the company values Vice Media at approximately $225 million.
The decision comes shortly after Vice discontinued its main television program, “Vice News Tonight.” The cancellation signaled the extent of the ongoing layoffs and cost reduction measures being implemented by the company.
In 1994, Vice evolved from a print magazine to a resilient online news brand. Eventually, the outlet transformed into a youth culture media empire. The company witnessed significant growth, attracting an investment of over $400 million from Disney. By 2017, Vice Media achieved a valuation of $5.7 billion.
Nevertheless, Vice encountered financial difficulties as it faced challenges in converting its substantial readership into stable digital advertising sales. The company had little solace in an unpredictable advertising market where social media platforms reaped a significant portion of the revenue.
