Vice, the one-time media darling valued at $6 billion, has applied for bankruptcy protection ahead of a planned sale.
The company, which once attracted the attentions of Disney, is to be sold to a consortium of its creditors that include the financier George Soros for $225 million. The creditors, who also include Fortress Investment Group and Monroe Capital, will also take on Vice’s liabilities.
The company could still be sold to a third party that is willing to make a higher offer.
Vice was one of a number of new entrant news organisations that wanted to tap into the new demands of a younger demographic. These included BuzzFeed news, which has also gone through a collapse in its market value, and its closing its BuzzFeed news business.
The sale by Vice follows a series of financial missteps. “This accelerated court-supervised sale process will strengthen the company and position Vice for long-term growth,” said Bruce Dixon and Hozefa Lokhandwala, co-chief executive officers at Vice. “We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business.”
The deal is expected to complete within three months.
A Vice TV channel was available in the UK and the Netherlands but closed in May 2021.
