Credit to CNN
Article by Haddon Lockyer
Vice Media, the left-leaning company once valued at $5.7 billion, is preparing to file for bankruptcy, according to sources close to the issue.
According to a new report from The New York Times, Vice has been desperately trying to avoid bankruptcy by seeking a buyer. Five companies have reportedly shown interest in purchasing the company, but no deals have gone through. The biggest turn-off to prospective buyers is Vice's debt; the company convinced major businesses like Disney and Fox to invest hundreds of millions into the media group before it began to spiral. Vice's largest debtholder, however, is Fortress Investment Group. As the senior debtholder, Fortress could end up controlling the company in the event of bankruptcy, according to The New York Times's source. Other companies who invested in Vice won't be so lucky. Reportedly, Disney has already written down its investments and will not be getting a return. On Monday, a spokesman for Vice said: “Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning. The company, its board and stakeholders continue to be focused on finding the best path for the company.”
Credit to Vice
Despite bankruptcy concerns, Vice will continue to operate normally for as long as possible. The company will also hold a 45-day auction to try and find a buyer. Many believe that Fortress will purchase Vice during this auction period. Investors have been watching Vice with concern since its CEO of five years, Nancy Dubuc, announced her departure in February. Then, last week, Vice announced that it would close its global journalism initiative, known as Vice World News. But Vice Media isn't the only digital media company facing hard times.Buzzfeed's stocks have dropped into the range of penny stocks, and the company announced last week that it would be shuttering its Buzzfeed News division.
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