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Vice Media Files For Bankruptcy To Facilitate Sale
Vice Media filed for Chapter 11 bankruptcy protection on Monday (May 15) to facilitate a sale of the company and protect its future.
Vice Media publishes news, technology and lifestyle websites such as Vice, Motherboard and Refinery29. The filing stated that the company had assets and liabilities valued between $500 million and $1 billion.
A group of creditors, which includes Fortress Investment Group, Soros Fund Management and Monroe Capital, made a conditional bid for substantially all of the company’s assets, according to Vice. The lenders agreed to provide approximately $225 million and would assume “significant liabilities” upon the closing of the deal.
The plan to sell the company comes weeks after they announced a major restructuring that will result in dozens of job cuts and the end of its popular program “Vice News Tonight.”
On the other hand, Vice appears to be hopeful that the sale will be a positive move in the long run.
Co-chief executive officers Bruce Dixon and Hozefa Lokhandwala said:
“This accelerated court-supervised sale process will strengthen the company and position Vice for long-term growth…We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business. We look forward to… charting a healthy and successful next chapter at VICE.”
The bankruptcy filing comes amid a challenging period for several technology, news, and entertainment companies, as they resort to downsizing in recent months due to a turbulent economy and a weak advertising market.
In April, Buzzfeed said it would close down its news division altogether, and last week Paramount Media pulled the plug on MTV News.
As you may already know, recent reports revealed that the news production division of MTV is coming to an end after 36 years. The shutdown is reportedly the result of parent company Paramount Global dropping 25% of its staff. Many of the division’s former VJs and staff spoke out, sharing thoughtful memories and their sadness about the entire ordeal.
Former VJ (video jockey) Ananda Lewis, who worked for MTV News from 1996 – 2001 reportedly stated:
“A pillar of creative and diverse speech is crumbling. MTV News covered things no one else could…We could get inside the trailer with DMX and Korn as they were taking historic concert stages. Artists trusted MTV News to tell their stories.”
She added:
“Even though I was technically a VJ, I did many specials with MTV News and know firsthand what a huge loss this is for the culture of music and all who love it.”
What are your thoughts on Vice filing for bankruptcy? Lets us know in the comments below!
The post Vice Media Files For Bankruptcy To Facilitate Sale appeared first on theJasmineBRAND.
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