Vice Media, the once-high-flying media company, filed for bankruptcy on Monday and agreed to sell itself to a group of its lenders for $225 million.
The bankruptcy filing marks the latest downfall of media upstarts that years ago commanded sky-high valuations, only to struggle to compete with the likes of Meta Platforms’ Facebook and Alphabet’s Google for ad dollars. Last month, BuzzFeed said it was closing BuzzFeed News after it continued to lose money.
The bankruptcy filing is a stunning fall from grace for Vice, which was once valued at $5.7 billion and was seen as a potential challenger to the traditional media giants. But the company has struggled in recent years, as it has faced competition from other digital media companies and as its advertising revenue has declined.
In recent months, Vice has made a number of moves to try to turn things around, including cutting costs and laying off employees. But the company was unable to avoid bankruptcy.
Under the terms of the sale, a group of lenders led by Fortress Investment Group will acquire Vice’s assets. The lenders will also assume $125 million of Vice’s debt. The sale is expected to close in the next few months.
The company filed for chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York, and said a group of its creditors had agreed to buy Vice for about $225 million and take on significant liabilities. The agreement is subject to higher bids from other parties, it said.
Vice’s bankruptcy filing is a sign of the challenges facing the media industry. Traditional media companies are facing competition from digital media companies, and advertising revenue is declining. This has led to a number of media companies filing for bankruptcy in recent years.
It remains to be seen whether Vice will be able to emerge from bankruptcy and become a successful media company. The company faces a number of challenges, including competition from other digital media companies and the need to find new sources of revenue.
But Vice also has some strengths. The company has a strong brand and a loyal following among young people. It also has a number of popular content brands, such as Vice News and Viceland.
If Vice can successfully turn things around, it could become a profitable media company. But the road ahead will be difficult.
