Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Vice and Motherboard owner files for bankruptcy

Vice and Motherboard owner files for bankruptcy

The company behind the websites Vice and Motherboard has filed for bankruptcy in the US and is set to be sold to a group of its lenders.

Vice Media Group - which was valued at $5.7bn (£4.5bn) in 2017 - could be taken over for $225m.

The youth-focused digital publisher said it will continue to operate during the bankruptcy process.

It added that it "expects to emerge as a financially healthy and stronger company in two to three months".

Launched in 1994 as a fringe magazine called Voice of Montreal by Shane Smith, Gavin McInnes and Suroosh Alvi, Vice currently operates in more than 30 countries.

It was once heralded as part of vanguard of companies set to disrupt the traditional media landscape with edgy, youth-focused content spanning print, events, music, online, TV and feature films.

After a visit to the Brooklyn-based firm's office in 2012, media mogul Rupert Murdoch tweeted: "Who's heard of VICE media? Wild, interesting effort to interest millennials who don't read or watch established media. Global success."



 Past credits have included My Journey Inside the Islamic State, in which a Vice journalist filmed alongside the terror group in Syria. It also followed basketball star Dennis Rodman and the Harlem Globetrotters team on a "sports diplomacy" trip to North Korea.


More recent fare has included documentaries about controversial influencer Andrew Tate and a film about Ukraine's president, Volodymyr Zelensky, by actor Sean Penn.

Vice Media Group's investors include Fortress Investment Group, Monroe Capital and Soros Fund Management - the firm founded by fund manager and billionaire George Soros.

The hope was that Vice would reap the financial rewards from attracting millions of younger readers through social media networks such as Facebook and Instagram.

However, the company's revenues have been flat for some years and it has also struggled to turn a profit. Vice's plans to go public through a merger also failed.

"The issue with Vice and all similar websites is that they never really worked out a business model for free online journalism," Joseph Teasdale, head of technology at Enders Analysis, told the BBC.

Websites like Vice came along at the same time as the first dotcom boom was in its infancy and technology start-ups were springing up.

"There was a tendency at the time to treat everything like software, where you do your investment up front, attract a bunch of users, and then eventually when you're big enough you become incredibly profitable," he said.

"But it turns out content doesn't work like that - if you want people to keep coming back to your website, or to reach new people in new markets, you have to keep spending to make new content."

And some of Vice's content was "pretty expensive journalism", Mr Teasdale said, involving global trips.

Last month, Vice announced layoffs after its flagship TV programme was shut down.

BuzzFeed, another pioneering online platform, also recently announced that it was shutting down its news division and laying off 15% of its workforce amid serious financial challenges and a slump in advertising revenue.

Vice Media has filed for Chapter 11 bankruptcy protection, a procedure which postpones a US company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business.

Announcing the bankruptcy move, Bruce Dixon and Hozefa Lokhandwala, Vice's co-chief executive officers, said: "This accelerated court-supervised sale process will strengthen the company and position Vice for long-term growth."

Vice's lenders have approved $20m of funding to keep the firm going through the bankruptcy process. During this time, other firms can submit "higher or better" bids for the media company.

If these offers are not successful, Vice Media's lenders will acquire the publisher for $225m.

The sale process is expected to take about two to three months.

Newsletter

Related Articles

0:00
0:00
Close
Építészeti és építőipari tanulságok: A törökországi földrengés tragédiája
A kazahsztáni repülőgép-baleset túlélői és Budapest kapcsolatai
Új utak a gazdasági és politikai kihívások közepette: Magyarország és a világ aktuális eseményei
A geopolitikai feszültségek új szakaszába lépett Kelet-Európa és Ázsia
Biztonsági intézkedések megerősítése és közbizalom helyreállítása Németországban
Katar figyelmeztetése: gázszállítási szankciók árnyéka Európa felett
Új lehetőségek Budapest számára az energiapiaci átalakulás közepette
In Magdeburg, Germany, authorities apprehend a man for stating, "I am a Christian."
Muslims vandalize Christmas tree in Germany
Fake North African asylum seeker in Spain beats women just for fun, then runs away
European Leaders Revive Agreed Over Greater Defense Spending
Growing Strains in Germany After Magdeburg Christmas Market Incident
Elon Musk's AfD Endorsement Ignites Controversy from neo-Nazis who accuse the AfD of being what they themselves are
Chinese startup AGIBOT has started large-scale manufacturing of versatile humanoid robots.
EU Orders Apple to Open Up: A Bold Move Against Corporate Monopolies
Trump Recognizes Some Advancement in Ceasefire Initiatives for Ukraine Conflict
Tragic Loss in the Montserrat Mountains: Mango Founder Isak Andic Passes Away in Hiking Accident
Hungary's Balancing Act: Boosting Influence While Managing Economic Stability and Political Controversies
Failing the Test of Leadership: Netanyahu's Security Missteps
Pope Francis' Call for Compassion: Balancing Humanitarian Needs with Socio-Economic Realities
Pozitív Fordulatok és Új Lehetőségek: Oktatás, Gasztronómia és Sport Magyarországon
Magyarország szerepe az uniós szankciók kérdésében: Az energetikai stabilitás és az EU egységének egyensúlya
Romanian Authorities Thwart Armed Mercenary Plot, Drawing Parallels to U.S. Capitol Riot
Strategic Explosions: The Volatile Intersection of Guerrilla Tactics and Geopolitics in Ukraine
Austria's Dilemma: Repatriation of Syrian Refugees Amidst Fragile Peace
The Rising Tide of Aridity: Unmasking a Global Threat
Polarization: The Word That Unites a Divided Era
The TikTok Conundrum: A Battle for Free Speech and Innovation
A Test of Balance: Self-Defense and Judicial Equity in Germany
The Compass of Time: Unraveling the 2024 Person of the Year
Swift's Epoch: Revolutionizing Concert History with the Eras Tour
Storm Darragh Ravages the UK: A Pre-Christmas Tempest of Destruction
Enduring Peace or Strategic Uncertainty: Zelensky's Bold Plea Amidst Ukraine's Woes
Notre-Dame Rises Again: A Symbol of Resilience Amidst Turbulent Times
UAE Invests in Quantum Leap: A Bold Move Towards a Trillion-Dollar Future
Dutch Parliament's Controversial Motion Ignites Nationwide Protests
Integration or Intrusion? The Dutch Debate Over Migration Data
Bananas and Cocaine: The Unseen Paths of a Global Epidemic
The Surveillance Mirage: When Millions of Cameras Fail to Deliver Justice
Navigating the Digital Storm: Taylor Swift's Diplomatic Dance in Celebrity Showdowns
Justice Denied: Outrage in Germany as Legal System Fails Rape Victim
Storm Darragh's Menace: UK Prepares with Rare Emergency Alert
Guardians of Safety: Balancing Security and Freedom in Modern Europe
Germany Averts Christmas Market Terror Attack Amid European Political Turmoil
The European Energy Conundrum: Navigating Dependency and Independence
France at a Crossroads: Navigating Political Tumult and Economic Divergence
Britain Leads Charge in AI Safety Amid Global Challenges
A Conflict Beyond Borders: Navigating the Complexities of Israel and Gaza
Georgia's EU Saga: Aspirations, Challenges, and a Nation Divided
Macron's Gamble: Navigating France's Political Tempest
×