Vice Media Group announced layoffs after cancelling its popular TV program, Vice News Tonight and implemented a broader restructuring plan. (Image: Vice News)
The Vice Media Group, valued at $5.7bn in 2017, is reportedly preparing to file for bankruptcy
Vice Media Group is preparing 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 shuttered 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. The news of Vice Media Group’s bankruptcy comes amid news of media layoffs and closures, including the closure of BuzzFeed News.
At least five companies are interested in Vice and it might consider a sale to avoid bankruptcy, the report said. It also said that if it were to go bankrupt then it would happen in the next few weeks and Vice’s debt holder Fortress Investment Group may end up controlling the company.
The report further added that in the event of bankruptcy the company would still continue to operate normally.
A spokesperson for Vice said that the media group remains “engaged in a comprehensive evaluation of strategic alternatives and planning” and that the “ board and stakeholders continue to be focused on finding the best path”.
Due to an economic downturn and weak advertising market, the journalism industry across the world has been downsizing in the recent months signalling a challenging moment for media and technology firms.
BuzzFeed News said it will shutter its news division. BuzzFeed and Vice News were a hit among millennials because of the offbeat content and informal presentation of news.
However, these two media groups faced challenges as they could not meet the challenges posed by a digital-first business model.
Vice Media informed last week that its popular TV program Vice News Tonight will be cancelled due to a broader restructuring plan and that it would entail job cuts across the digital media firm’s global news business.
Years of financial difficulties and top-executive departures also was one of the reasons. The reports pointed out that more than 100 employees would be laid off in the restructuring process.
Vice was valued $5.7bn in 2017 and was one of the fast-rising digital media ventures.
Founders Shane Smith, Gavin McInnes and Suroosh Alvi founded the company which was once a small magazine in Canada. McInnes parted ways with Vice and founded the Proud Boys, a far-right group whose leaders face charges for instigating the January 6 Capitol Hill riots.
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