the american group Media which also has a presence in Greece, with the ANT1 group having acquired in the recent past an investment position in its share capital, is the new name ringing in the media market amid financial troubles. The group, after declaring bankruptcy, announced that it would continue to operate for a of a “courtly supervised sale” that is expected to lead to its takeover by a creditor scheme led by Fortress and Soros Fund Management.
The application for membership Media in chapter 11 of bankruptcy code on Monday morning, came to add to a series of dramatic developments affecting digital media companies reeling after a meteoric rise. The bankruptcy declaration was already discounted by the market since the beginning of May while it comes amid a wave of layoffs and lockouts at various parts of the company, such as the BuzzFeed News website.
However, a few years ago such a thing seemed impossible. It was the time when the media group, which was mainly aimed at young audiences with its theme, it was valued at $5.7 billion.
The beginning of success and appeal to young audiences
Vice, in its early stages, had started in Montreal, Canada as a magazine in the mid-1990s. His objective then was to give a platform to young people, but also to social groups that did not usually find a place in the traditional media. He was so well received and popular that he moved to Williamsburg, a suburb of New York. So, from 2006 it expanded digitally through Vice TV, without ceasing to focus on the adolescent and young public.
Through the years, Vice developed a journalism that covered bold stories around the world., which particularly resonated with new and young audiences across all digital platforms. Little by little, it built the profile of a global media company, also making an appearance in Greece with the vice greece, through your frequency ANT1.
The company’s assets also include film and television production, an in-house marketing agency, and brands such as Refinery 29 and Unbothered.
From a value of $5.7 billion to $800 million in outstanding debt
In 2017 the valuation of the group exceeded 5 billion Now it is estimated that his fortune has been reduced. The bankruptcy filing shows that Vice has a total of $834 million in outstanding debt.
The bankruptcy filing comes just weeks after the company announced it was canceling its flagship show “Vice News Tonight” amid a wave of layoffs expected to affect more than 100 of the company’s 1,500 employees, the Wall reported. StreetJournal. The company also said it would end the brand. Vice World News.
As reported by hindu.com, a consortium of lenders (Fortress Investment Group, Soros Fund Management and Monroe Capital) buys Vice for about $225 million(The Wall Street Journal was initially talking about $400 million), assuming a significant additional portion of the company’s debt, while other parties may bid.
Vice announced that it expects the sale will be completed within the next two to three months. He said that during the process his brands will continue to produce content and the company will continue to pay its employees and suppliers.
Monday’s bankruptcy filing came just months after Nancy Dubuque announced she was stepping down as the company’s CEO.
Dubuque replaced Vice co-founder, shane smith, in 2018, a tumultuous time for Vice after a 2017 Times investigation uncovered a case of sexual harassment and misconduct at the company.
Whats Next
As fastcompany reports, it was a bankruptcy that just like lightning did not fall. For months it was rumored that he was looking for buyers and that he was drowning in debt.
The group will continue to function. as, according to their announcement, “All of VICE’s media brands, including VICE, VICE News, VICE TV, VICE Studios, Pulse Films, Virtue, Refinery29, and iD, will continue to produce and deliver award-winning content across all platforms” during the bankruptcy. presentation.
On whether there will be layoffs, this remains unknown, for now. A few weeks ago there were 100 layoffs when Vice News Tonight and Vice World News shut down.
How long will the Vice bankruptcy process take? Vice says the entire process will take two to three months to complete. Vice also received $20 million in financing from the joint venture to finance its business during the time it takes to complete the sale.
What happens once the process is complete? Vice and its properties will continue to operate under the new ownership and without the debt the company now carries. “This expedited sale process under court oversight will strengthen the company and allow it to grow long-term, thereby ensuring the kind of authentic journalism and content creation that makes it such a trusted brand for young people and such a valuable partner for brands. and agencies. and platforms”Vice’s co-CEOs said in a statement. “We will have new owners, a simplified capital structure and the ability to operate without the old responsibilities that burdened our business.”
Antenna Group Participation
Media two years ago had completed a round of financing 135 million dollars, which included James Murdoch’s Lupa Systems, Texas Pacific Group, Sixth Street and the Antena Group of the Kyriakou family.
The two groups work together since 2014 with a tip vice greece on the Greek market, while they had announced the 2016 content distribution partnership agreement for their markets Serbian and her Romania and three years later, in 2019, for new purchases. Vice Greece’s chairman of the board is held by Nikos Angelopoulos, director of the Antenna group and president of Antenna TV. According to the most recent published financial statements, in 2021 Vice Greece’s turnover moved to levels of €6.3 million (compared to 7.7 million euros in 2020) and obtained a net profit of 1.3 million euros (compared to 2.5 million euros in 2020). About a year ago, foreign publications reported that the ANT1 group was among the possible buyers of the American group, but this was never confirmed.
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