Once a powerful leftist media company, Vice Media is now facing the possibility of bankruptcy, The New York Times reports.
The company, which was valued at $5.7 billion just six years ago, has seen its fortunes change, and conservative commentators are seizing the opportunity to argue that organizations embracing “woke” culture will ultimately go broke.
Originating as a punk magazine in Montreal over two decades ago, Vice grew into a worldwide media enterprise, boasting a movie studio, an ad agency, an HBO show, and global bureaus.
In 2015, Disney, which had invested heavily in Vice, even contemplated acquiring the company for over $3 billion, as revealed by two sources familiar with the discussions.
Two individuals with knowledge of Vice Media’s operations informed the New York Times that a bankruptcy filing could occur in a matter of weeks.
Vice Media, which has been supported by George Soros, may be able to stave off bankruptcy if a buyer steps in to purchase the company.
Although there are several parties expressing interest, insiders believe the odds of a successful takeover are low.
If a sale were to occur, Fortress Investment Group, Vice’s largest debt holder based in New York City, is likely to assume control.
As a senior debt holder, Fortress would be paid first, while Disney and other investors are not anticipated to receive any returns on their investments.
Despite the potential bankruptcy filing, the Guardian reports that the company plans to continue operations and produce left-leaning content.
This news comes as other liberal media organizations such as BuzzFeed, CNN, the Washington Post, NPR, Gannett, NBC News, and Vox Media have been forced to lay off employees due to a challenging “economic climate.”
Co-CEOs Bruce Dixon and Hozefa Lokhandwala said in a statement, “In response to the current market conditions and business realities facing [Vice Media Group] and the broader news and media industry, we are moving forward on some painful but necessary reductions, primarily across our News business.”
Dixon and Lokhandwala further noted that the company is “transforming Vice News to better withstand market realities and more closely align with how and where we see our audiences engaging with our content most.”
According to The Times, Vice, once seen as a digital media trailblazer, is now on the brink of bankruptcy as its prospects of finding a buyer grow increasingly slim.
Should bankruptcy be declared, Fortress Investment Group, Vice’s largest debtholder, could gain control of the company.
Vice would then continue normal operations and initiate an auction to sell the company over a 45-day period, with Fortress in a prime position to acquire the company.
“Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning,” Vice said on Monday. “The company, its board, and stakeholders continue to be focused on finding the best path for the company.”
