American media group Vice said Monday filed for bankruptcy to facilitate the salean announcement that the market has been waiting for for a few weeks.
Shame, Known for breaking news and lifestyle contentgrew to be one of the rising stars of a new generation of digital media companies, but struggled with declining advertising revenues.
A consortium, which also includes the investment firm Fortress Investment Group, Vice’s main creditor, will take control of the group for $225 million unless other parties make a higher offer, according to the statement released Monday.
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Vice Media Group, which was valued at $5.7 billion in 2017, produces content in 25 languages, with more than 30 offices around the world.
It can be accessed for free and mainly relies on advertisements to generate revenue. But with the deteriorating economic situation, the advertising market shrank and was mainly captured by tech giants such as Google and Facebook. Vice canceled its flagship show Vice News Tonight and laid off 100 people at the end of April.
In his statement Monday the group assured that all of its media brands will continue to produce content despite the bankruptcy filing. “We hope to finish it sales process in the next two or three months and chart a successful next chapter at Vice.”
Founded in 1994 as a Canadian magazine, Vice grew into an online media group with news websites and television operations.
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In the early 2010s, Vice, like BuzzFeed or The Huffington Post, embodied a new generation of all-digital media that wanted to differentiate itself from traditional media and appeal to young audiences.
After cultivating a “bad boy” image, Vice gained notoriety for sending former NBA star Dennis Rodman to North Korea. He also received praise for a five-part documentary about the inner workings of the Islamic State group.
The free media is most exposed in a difficult economic context, which has already led to layoffs in major media outlets, from US public radio NPR to The Washington Post, through the CNN channel.
BuzzFeed also announced the closure of the BuzzFeed News site in late April, with 180 laid off.
Source: Eluniverso
Mabel is a talented author and journalist with a passion for all things technology. As an experienced writer for the 247 News Agency, she has established a reputation for her in-depth reporting and expert analysis on the latest developments in the tech industry.
