Vice Media Reportedly Planning To File for Bankruptcy
Updated: Dec 19, 2023
Vice Media, which was once considered one of the most successful news startups in history, is now struggling financially as it reportedly weighs filing for bankruptcy.
According to the New York Times, the digital media and broadcasting startup has been looking for a buyer to avoid bankruptcy. However, in the event that it doesn't find one, Fortress Investment Group, Vice's debt holder, could end up controlling the company. The filing could occur anytime in the coming weeks, the report noted.
A spokesperson for Vice said the company "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."
Vice is expected to continue operations even after it files for bankruptcy.
Vice last week laid off more than 100 of its workers and axed its flagship Vice News Tonight cable program as part of a restructuring effort to cut costs. Among those affected by the layoffs are the company's staff in Asia. "Our APAC team has been decimated amid widespread layoffs today at Vice World News," tweeted Alastair McCready, Asia-Pacific (APAC) Editor for Vice World News.
The report also comes amid a string of layoffs in the media industry, with the likes of ESPN, Insider, Vox Media, Washington Post, and News Corp all announcing job cuts. Buzzfeed News, meanwhile, shuttered operations last month.
Vice operates a cable channel of the same name and creates content for its suite of media outlets which include Vice News, Vice TV, Refinery29 and Motherboard. It was among a group of fast-rising digital media ventures that attracted a predominantly young audience, reaching a valuation US$5.7 billion in 2017. The company's investors include Walt Disney Co. and the Fox Corporation, though the equity they hold may now be worthless, the Times noted.
Vice Media, which was once considered one of the most successful news startups in history, is now struggling financially as it reportedly weighs filing for bankruptcy.
A spokesperson for Vice said the company "has been engaged in a comprehensive evaluation of strategic alternatives and planning."
The news comes a week after the company laid off more than 100 of its workers and axed its flagship Vice News Tonight cable program as part of a restructuring effort to cut costs.