US-based Vice Media files for bankruptcy
Vice Media, once a rising star in the digital media industry, has encountered significant setbacks and filed for Chapter 11 bankruptcy in the United States. The company, known for popular websites like Vice and Motherboard, is in the process of finalizing its sale to a group of lenders.
The consortium of lenders submitted a credit bid of approximately $225 million (€206 million) for most of Vice Media’s assets and agreed to assume substantial liabilities upon the transaction’s completion. It is worth noting that in 2017, Vice Media had a valuation of $5.7 billion.
This development follows BuzzFeed Inc.’s recent announcement to shut down BuzzFeed News as part of cost-cutting measures. Despite these challenges, Vice Media intends to continue its operations and retain its workforce, paying employees and vendors as usual.
Vice Media initially gained success by disrupting the traditional media landscape with its edgy news and lifestyle content, primarily adopting a digital-first approach. However, the company has struggled due to a decline in digital advertising revenue. This financial strain prompted Vice Media to make difficult decisions, including canceling its flagship program “Vice News Tonight” and implementing significant layoffs affecting over 100 employees.
Additionally, Vice Media plans to discontinue its Vice World News brand. The company’s chief executives, Bruce Dixon and Hozefa Lokhandwala, expressed optimism about the future, stating that the court-supervised sale process will strengthen the company and position it for long-term growth. They emphasized the importance of preserving Vice’s authentic journalism and content creation, which have made it a trusted brand among young people and a valued partner for brands, agencies, and platforms.
It is worth noting that the media industry in the United States has experienced a broader trend of layoffs and closures, with organizations such as Gannett, NPR, the Washington Post, and others announcing job cuts.
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