LONDON: Once valued at $5.7 billion, Vice Media could be heading toward bankruptcy, according to a New York Times report that cited two sources familiar with the group’s operations.
Three insiders, who said they were not permitted to talk on the record, told the newspaper that the US-Canadian digital media company, which is behind websites including Vice and Motherboard, could file for bankruptcy within weeks.
The report was published on Monday, days after Vice announced the cancellation of its flagship “Vice News Tonight” program, and as other media companies, including CNN, Vox and the Washington Post, announced layoffs and closures
In an attempt to avoid declaring bankruptcy, Vice has been looking for a potential buyer and at least five are said to have shown interest. However, the chances of a deal are “growing increasingly slim,” according to the report.
Vice’s largest debtholder, Fortress Investment Group, could end up controlling the business if it is declared bankrupt. The digital media disrupter would continue to operate normally during a 45-day auction period to sell the company.
“Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning,” Vice said on Monday, adding that “the company, its board and stakeholders continue to be focused on finding the best path for the company.”
Vice Media is likely to be valued below $1 billion, CNBC reported. In 2017, after a funding round from the private-equity firm TPG, Vice was worth $5.7 billion.
The company rose to prominence alongside its co-founder, Shane Smith, who built a media empire that began with a single Canadian magazine.
