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Vice Media is submitting for Chapter 11 chapter safety, the most recent digital media firm to falter after a meteoric rise.
Vice mentioned Monday that it has agreed to promote its belongings to a consortium of lenders — Fortress Funding Group, Soros Fund Administration and Monroe Capital — in change for $225 million in credit score. Different events may even have the ability to submit bids.
The chapter submitting arrives simply weeks after the corporate introduced it will cancel its flagship “Vice Information Tonight” program amid a wave of layoffs — which was anticipated to affect greater than 100 workers within the firm’s 1,500-person workforce, the Wall Avenue Journal reported. The corporate additionally mentioned it will finish its Vice World Information model, making Vice Information its solely model worldwide.
Monday’s submitting comes amid a wave of media layoffs and closures — together with job cuts at Gannett, NPR, the Washington Put up and extra over current months. In April, BuzzFeed Inc. introduced that its Pulitzer Prize profitable digital media outlet BuzzFeed Information was being shut down as a part of a cost-cutting drive by its company mum or dad.
Digital promoting has plummeted this yr, reducing into the profitability of main tech corporations from Google to Fb.
Vice Media’s roots date again to 1994, with the launch of Vice’s authentic punk journal in Montreal. Vice quickly moved to New York and constructed itself into a world media firm.
Through the years, Vice developed a status for in-your-face journalism that coated daring tales all over the world. The media firm’s belongings additionally consists of movie and TV manufacturing, an in-house advertising company, and types similar to Refinery 29 and Unbothered.
The media firm has struggled to show round income in recent times. Amid its monetary crunch, Vice secured $30 million in debt financing from Fortress Funding Group in February, the Wall Avenue Journal reported.
In 2017, Vice was valued at $5.7 billion. Now, nonetheless, most consultants estimate the corporate is price only a fraction of that, The New York Instances reported earlier this month.
Vice co-CEOs Bruce Dixon and Hozefa Lokhandwala mentioned the sale course of will strengthen the corporate and place it for long-term progress, “thereby safeguarding the type of genuine journalism and content material creation that makes VICE such a trusted model for younger folks and such a valued companion to manufacturers, businesses and platforms.”
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