Vice Media files for bankruptcy – DW – 05/15/2023

Vice Media has become the newest digital media A company stumbles after a meteoric rise.

The news outlet, popular with websites such as Vice and Motherboard, has filed for bankruptcy protection at United State while trying to finalize his sale to a group of moneylenders.

Vice said the consortium made a credit offer of about $225 million (206 million euros) for “significantly all of the company’s assets, as well as taking on significant liabilities upon closing”. In 2017, Vice Media was valued at $5.7 billion.

Vice Media’s announcement on Monday comes after BuzzFeed Inc. Last month it said it would shut down BuzzFeed News as part of a cost-cutting campaign.

Vice continues to work

Vice, known for its sensational news and lifestyle content, found initial success with a digital-first model that disrupted the traditional media landscape.

However, the company has been struggling with declining digital advertising revenue.

The bankruptcy announcement comes just weeks after the company announced it would cancel its flagship show, “Vice News Tonight,” amid a wave of layoffs expected to affect more than 100 of the company’s 1,500-strong workforce.

The company also said it would end its Vice World News brand.

Vice said Monday that its brands will continue to produce content and the company will continue to pay its employees and vendors.

The expedited, court-supervised sale process will “strengthen the company and position it for long-term growth,” CEOs Bruce Dixon and Josefa Lokhandwala said, “thereby protecting the kind of authentic journalism and content creation that makes VICE a trusted brand to young people and such a valuable partner to brands.” commercial agencies and platforms.

In the United States, there has been a spike in media layoffs and shutdowns, including job cuts at Gannett, NPR, the Washington Post, and other organizations.

lo/jcg (AP, AFP)