Vice Media Files for Bankruptcy Amid Digital Media Downturn
Vice Media, a prominent digital media company known for its popular platforms Vice and Motherboard, has recently filed for bankruptcy protection in the United States while in the process of finalizing a sale to a group of lenders. The consortium has submitted a credit bid of approximately $225 million (€206 million) to acquire “substantially all of the Company’s assets, in addition to assuming significant liabilities upon closing,” according to Vice. Notably, Vice Media was valued at a staggering $5.7 billion back in 2017.
This announcement from Vice Media follows closely on the heels of BuzzFeed Inc.’s decision to shut down BuzzFeed News as part of its cost-cutting efforts.
Despite its financial struggles, Vice Media will continue its operations. Renowned for its edgy news and lifestyle content, Vice initially disrupted the traditional media landscape with its digital-first model. However, the company has faced challenges due to a sharp decline in digital advertising revenue.
The bankruptcy declaration comes shortly after Vice Media revealed its plans to cancel the flagship program “Vice News Tonight” and undergo a significant round of layoffs expected to affect over 100 employees out of its 1,500-person workforce. Furthermore, the company has announced the discontinuation of its Vice World News brand.
Vice Media confirmed that its brands would persist in producing content, and it intends to fulfill payments to its employees and vendors. Chief executives Bruce Dixon and Hozefa Lokhandwala expressed their belief that the “accelerated court-supervised sale process” will bolster the company, positioning it for long-term growth. They emphasized the importance of preserving Vice’s trusted brand for young audiences and its valued partnerships with brands, agencies, and platforms by safeguarding authentic journalism and content creation.
This development in Vice Media’s fortunes reflects a broader trend of media layoffs and closures in the United States, with notable organizations like Gannett, NPR, and the Washington Post also implementing job cuts.
