Vice files for Chapter 11 bankruptcy
BNN Bloomberg
Vice Media LLC filed for bankruptcy protection and struck a deal to sell itself to creditors, punctuating a precipitous fall for the media upstart that once boasted a US$5.7 billion valuation.
The developments cap a tumultuous few months for the firm, which began as an alternative magazine in Montreal nearly three decades ago and captured the attention of young viewers globally with documentary-style videos. It shared a Pulitzer Prize in 2020 and multiple Emmy wins for Vice News Tonight.
Its rapid downfall underscores the challenges facing digital media companies, which are struggling as advertisers cut spending during an uncertain economy and route marketing toward tech platforms from Facebook and Google to TikTok.
The Brooklyn-based company listed both assets and liabilities in the range of more than $500 million to as much as $1 billion in a Chapter 11 petition filed in Southern District of New York. In a separate statement, Vice announced it reached a deal with creditors including Fortress Investment Group, Soros Fund Management and Monroe Capital to purchase its assets for $225 million and assume significant liabilities. The agreement, however, allows for rival bidders to emerge.
