Vice Media Group Prepares For Bankruptcy

"Vice Media Group appears to be the latest digital media company in trouble," writes longtime Slashdot reader DesScorp. "The New York Times reports that the company is preparing for bankruptcy after being unable to find a buyer. Vice canceled Vice News Tonight only four days ago. The company, once valued at over $5.7 billion, has been bleeding cash, and major investors such as Disney will take a huge loss." From the report: In the event of a bankruptcy, Vice's largest debt holder, Fortress Investment Group, could end up controlling the company, said one of the people. Vice would continue operating normally and run an auction to sell the company over a 45-day period, with Fortress in pole position as the most likely acquirer. Unlike Vice's other investors, which have included Disney and Fox, Fortress holds senior debt, which means it gets paid out first in the event of a sale. Disney, which has already written down its investments, is not getting a return, the person said. Vice began as a punk magazine in Montreal more than two decades ago. Over the years, it blossomed into a global media company with a movie studio, an ad agency, a glossy show on HBO and bureaus in far-flung world capitals. Disney, after investing hundreds of millions in Vice, explored buying the company in 2015 for more than $3 billion, according to the two people familiar with the conversations. "Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning," Vice said in a statement on Monday. "The company, its board and stakeholders continue to be focused on finding the best path for the company."

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