A group of buyers led by Fortress Investment Group has emerged as the winner in the bankruptcy sale of Vice Media after pledging $225 million, according to court documents filed on Thursday. The sale is expected to be completed by July 7, pending approval from the United States Bankruptcy Court for the Southern District of New York.
Fortress Investment Group, an existing lender of the company, had been widely expected to be a potential buyer of Vice Media, alongside Soros Fund Management and Monroe Capital. The bankruptcy auction, which was originally scheduled for Thursday morning, has been canceled in light of the winning bid.
Vice Group Holding filed for Chapter 11 bankruptcy on May 15, 2023. At the time, the media company, which includes VICE Studios, VICE TV, Virtue, VICE.com, and Refinery29, listed assets and liabilities in the range of $500 million to $1 billion. The bankruptcy filing came after Nancy Dubuc stepped down as CEO of Vice Media in February, following a tenure that began in 2018 when she succeeded Vice co-founder Shane Smith. In addition, Jesse Angelo, Vice’s global president of news and entertainment, left the company in March.
The media industry as a whole has been facing a challenging advertising environment, and Vice Media has not been immune to the impact. In April, Vice shuttered its flagship TV news show, Vice News Tonight, and laid off over 100 staff members. In early May, the company instituted widespread layoffs at its Vice World News division and closed its APAC offices. These cost-cutting measures were implemented to navigate the difficult market conditions and streamline operations.
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The sale of Vice Media to Fortress Investment Group marks a new chapter for the media company. Fortress, with its experience as a lender and investor, is well-positioned to navigate the challenges facing the industry and leverage Vice Media’s assets to drive growth and profitability. The completion of the sale will provide Vice Media with the necessary financial stability to continue operating and executing its strategic vision.
The winning bid by Fortress Investment Group was first reported by The New York Times. The news comes as a promising development for Vice Media and its employees, as it presents an opportunity for the company to rebuild and revitalize its operations under new ownership.
As the sale moves forward, it is important to note that the approval of the bid by the bankruptcy court is still pending. The court hearing to approve the bid is scheduled for Friday in the United States Bankruptcy Court for the Southern District of New York. Once the bid receives court approval, the sale is expected to be finalized by July 7, allowing Vice Media to transition to its new ownership.
The future of Vice Media will depend on the strategic direction taken by Fortress Investment Group and its ability to capitalize on the company’s diverse portfolio of assets. With its various media properties and platforms, including VICE Studios, VICE TV, Virtue, VICE.com, and Refinery29, Vice Media has the potential to reach a wide audience and deliver engaging and impactful content.
In conclusion, the winning bid by Fortress Investment Group in the bankruptcy sale of Vice Media offers hope for the future of the media company. The completion of the sale, pending approval from the bankruptcy court, will provide Vice Media with the financial stability and resources needed to navigate the challenging media landscape. Under new ownership, Vice Media has the opportunity to rebuild and revitalize its operations, leveraging its diverse portfolio of assets to drive growth and profitability.
