Vice and Motherboard owner files for bankruptcy
Vice Media Group, the company behind Vice and Motherboard websites, has filed for bankruptcy in the US and could be sold to a group of lenders for $225m. The once-valued $5.7bn digital publisher plans to continue operating throughout the bankruptcy process and aims to emerge as a financially healthier company within two to three months. The lenders have approved $20m of funding to keep Vice Media going through the bankruptcy process. During this time, other firms can submit “higher or better” bids for the media company. If no offer is successful, Vice Media’s lenders will acquire the publisher for $225m.
Vice Media Group, known for its edgy, youth-focused content, operates in over 30 countries and has investors such as Fortress Investment Group and Soros Fund Management.
It has faced stagnant revenues, profitability challenges, and the failure of its plans to go public through a merger. The bankruptcy filing follows recent layoffs and the discontinuation of its flagship TV program.