Vice Media Group announced layoffs after it canceled its popular TV program Vice News Tonight and implemented a broader restructuring plan. (Picture: Vice News)
The Vice Media Group, valued at $5.7 billion in 2017, is preparing to file for bankruptcy
Vice Media Group is about to file for bankruptcy, the New York Times said in a report on Monday, citing people familiar with the developments. Vice Media Group also recently closed its Vice News Tonight And Vice World News.
The Vice Media Group was popular for its documentaries and popular media websites such as Vice And Motherboard. News of Vice Media Group’s bankruptcy comes amid news of layoffs and media closures, including the closure of BuzzFeed News.
At least five companies are interested in Vice and it may be considering a sale to avoid bankruptcy, according to the report. He also said that if it were to go bankrupt, it would happen in the next few weeks and Vice’s debt holder, Fortress Investment Group, could end up controlling the company.
The report further adds that in the event of bankruptcy, the company would continue to operate as normal.
A spokesperson for Vice said the media group remains “committed to a comprehensive evaluation of strategic alternatives and planning” and that “the board and stakeholders continue to be focused on finding the best way”.
Due to an economic downturn and a weak advertising market, the journalism industry across the world has downsized in recent months, signaling a difficult time for media and technology companies.
BuzzFeed News said it would close its news division. BuzzFeed and Vice News have been a hit with millennials due to offbeat content and informal news presentation.
However, both of these media groups faced challenges as they could not meet the challenges posed by a digital-centric business model.
Vice Media informed last week that its popular television program Vice News Tonight will be canceled due to a broader restructuring plan and that it would result in job cuts across the digital media company’s global news business.
Years of financial difficulties and senior staff departures were also part of the reason. Reports pointed out that more than 100 employees would be made redundant as part of the restructuring process.
Vice was valued at $5.7 billion in 2017 and was one of the fastest growing digital media companies.
Founders Shane Smith, Gavin McInnes and Suroosh Alvi founded the company which was once a small magazine in Canada. McInnes split from Vice and founded the Proud Boys, a far-right group whose leaders are accused of fomenting the Jan. 6 Capitol riots.
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