Vice Media, founded in 1994 as a Montreal-based punk magazine, filed for Chapter 11 bankruptcy on May 15, 2023.128 The company was once valued at $5.7 billion in 2017 after a $450 million investment from TPG.1278101113 A consortium led by Fortress Investment Group agreed to purchase Vice's assets for $225 million, taking on significant liabilities.127816
Timeline
| Date | Event | Source |
|---|---|---|
| 1994 | Vice Media was founded in Montreal as a punk magazine by Shane Smith, Suroosh Alvi, and Gavin McInnes. | 12810 |
| 1999 | Vice Media relocated its headquarters to New York. | 8 |
| 2013 | Vice News was launched as a YouTube channel. | 9 |
| 2015 | Disney invested $400 million in Vice Media. | 271011 |
| 2016 | Vice News Tonight debuted as a weekly broadcast program. | 2 |
| 2017-06-19 | Vice Media raised $450 million from TPG, valuing the company at $5.7 billion. | 101113 |
| 2018 | Shane Smith stepped down as CEO and Nancy Dubuc was hired as his replacement. | 278 |
| 2019 | Vice Media acquired Refinery29 for $400 million. | 2 |
| 2019 | Disney wrote off its $400 million investment in Vice Media as a loss. | 27 |
| 2021 | Vice Media explored a SPAC merger at a $3 billion valuation, but the plan collapsed. | 715 |
| 2023-02 | CEO Nancy Dubuc exited Vice Media after five years at the helm. | 278 |
| 2023-02 | Fortress extended a $30 million funding line to Vice Media to pay overdue bills to vendors. | 7 |
| 2023-04 | Vice Media canceled Vice News Tonight and laid off more than 100 staff. | 78 |
| 2023-04 | Vice Media announced layoffs across its global newsroom and shuttered Vice World News. | 2 |
| 2023-05-05 | Vice Media was reported to be nearing a $400 million deal to sell itself to top lenders. | 9 |
| 2023-05-15 | Vice Media filed for Chapter 11 bankruptcy protection in the Southern District of New York. | 1267816 |
| 2023-05-15 | Vice Media announced an asset purchase agreement with a consortium led by Fortress Investment Group for $225 million. | 127816 |
| 2023-07-21 | Vice Media was acquired by a private equity firm. | 15 |
Money raised
Vice Media raised over $1.6 billion from venture capitalists.4 In 2015, Disney invested $400 million in Vice Media.271011 In June 2017, Vice Media raised $450 million from TPG, valuing the company at $5.7 billion.101113 In 2019, Vice Media acquired Refinery29 for $400 million.2 In 2019, Disney wrote off its $400 million investment in Vice Media as a loss.27 In February 2023, Fortress extended a $30 million funding line to Vice Media to pay overdue bills to vendors.7 In May 2023, a consortium led by Fortress Investment Group agreed to purchase Vice Media's assets for $225 million.127816 Vice Media listed assets and liabilities in the range of $500 million to $1 billion in its bankruptcy filing.128 Fortress Credit Corp. ranked among the biggest secured creditors with claims totaling about $475 million.8 Vice Media received court permission to borrow $5 million to fund its bankruptcy.17
Investors named in the sources: TPG8101113, Disney271011, 21st Century Fox21011, A+E Networks1011, Fortress Investment Group127816, Soros Fund Management127816, Monroe Capital7816, Sixth Street Partners9, James Murdoch9.
What happened
Vice Media was founded in 1994 as a punk magazine in Montreal by Shane Smith, Suroosh Alvi, and Gavin McInnes.12810 The company relocated to New York in 1999.8 Vice Media expanded into digital media and television, striking deals with firms including Sky and HBO.7 Vice News was launched in 2013 as a YouTube channel.9 Vice Media attracted investments from media giants such as 21st Century Fox and Disney.271011
Disney invested $400 million in Vice Media in 2015.271011 In 2016, Vice Media launched Vice News Tonight, a weekly broadcast program.2 In June 2017, Vice Media raised $450 million from TPG, valuing the company at $5.7 billion.101113 Vice Media planned to use the TPG investment to create Vice Studios for scripted content.1011 In late 2017, Vice Media became embroiled in several MeToo scandals, amid allegations of sexual harassment and pay inequity.8
Vice Media fired three employees in December 2017 following complaints about workplace culture.2 Shane Smith stepped down as CEO in 2018 and was replaced by Nancy Dubuc.278 In 2019, Vice Media acquired Refinery29 for $400 million.2 Disney wrote off its $400 million investment in Vice Media as a loss in 2019.27 Vice Media explored a SPAC merger at a $3 billion valuation in 2021, but the plan collapsed.715
In February 2023, CEO Nancy Dubuc exited Vice Media after five years at the helm.278 In February 2023, Fortress extended a $30 million funding line to Vice Media to pay overdue bills to vendors.7 In March 2023, Vice Media's global president of news and entertainment, Jesse Angelo, exited the company.8 In April 2023, Vice Media canceled Vice News Tonight and laid off more than 100 staff.78 In April 2023, Vice Media announced layoffs across its global newsroom and shuttered Vice World News.2
Vice Media had tried without success to find a buyer willing to pay its asking price of more than $1 billion.2 On May 15, 2023, Vice Media filed for Chapter 11 bankruptcy protection in the Southern District of New York.1267816 Vice Media listed assets and liabilities in the range of $500 million to $1 billion in its bankruptcy filing.128 A consortium led by Fortress Investment Group agreed to purchase Vice Media's assets for $225 million.127816 The consortium included Fortress Investment Group, Soros Fund Management, and Monroe Capital.127816
The lenders provided more than $20 million in financing to fund Vice Media throughout the sale process.12716 Vice Media said it intended to keep paying its remaining employees and vendors throughout the bankruptcy process.2 Vice Media received court permission on May 16, 2023, to borrow $5 million to fund its bankruptcy.17 Vice Media was acquired by a private equity firm on July 21, 2023.15 Vice Media's brands, including Vice Studios, Vice TV, Virtue, Vice.com, Refinery29, and i-D, continued to produce content during the sale process.16
Vice Media was the latest casualty in a media industry affected by a downturn in digital advertising and changing appetite for news.2 BuzzFeed News shuttered in April 2023, and other newsrooms including NPR, CNN, ABC News, and Insider carried out layoffs in 2023.2 Vice Media had a contract with Showtime Networks to produce a weekly newsmagazine television series called the Vice Series.18 In the bankruptcy proceedings, Vice Media moved to assume and assign the Showtime contract to the new entity purchasing its assets.18 Showtime objected to the assignment, arguing that the contract was for personal services.18
The bankruptcy court considered the motion regarding the Showtime contract.18
Legal outcomes
- filedVice Media filed for Chapter 11 bankruptcy protection on May 15, 2023.1267816
- filedVice Media became embroiled in several MeToo scandals in late 2017, amid allegations of sexual harassment and pay inequity.8
- pendingIn the bankruptcy case, Vice Media moved to assume and assign a contract with Showtime Networks, and Showtime objected.18
Where the founders are now
Shane Smith stepped down as CEO of Vice Media in 2018.278 Shane Smith co-founded Vice Media in 1994.12810 Suroosh Alvi co-founded Vice Media in 1994.810 Gavin McInnes co-founded Vice Media in 1994.8
Lessons, as others put them
"We look forward to completing the sale process in the next two to three months and charting a healthy and successful next chapter at VICE."Bruce Dixon and Hozefa Lokhandwala, co-CEOs of Vice Media12
"We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business."Bruce Dixon and Hozefa Lokhandwala, co-CEOs of Vice Media7
"I am proud to leave a Vice better than the one I joined."Nancy Dubuc, former CEO of Vice Media2
Sources
- Vice Media, once worth $5.7 billion, files for bankruptcy, NPR, 2023-05-15
- Vice Media, once worth $5.7 billion, files for bankruptcy, WUNC News, 2023-05-15
- Vice Media joins list of America's biggest startup flameouts, axios.com, May 15, 20
- Vice Media files for Chapter 11 bankruptcy, fastcompany.com, May 15, 20
- Vice files for bankruptcy protection amid cut-price sale to consortium, the Guardian, 2023-05-15
- Vice Media Files for Bankruptcy, The Hollywood Reporter, 2023-05-15
- Vice Media nears a $400 million deal to sell itself out of bankruptcy, report - Tech Startups, Tech Startups - Tech News, Tech Trends & Startup Funding, 2023-05-05
- Vice Media raises $450 million, bumping valuation to near $6 billion, Los Angeles Times, 2017-06-19
- Brooklyn’s Vice Media Raises $450 Million for Video Push, The Bridge, Jun 19, 20
- Vice just scored $450 million to make the 'largest millennial video library in the world', CNBC, 2017-06-19
- Vice Media IPO Timeline and Financing Details - Forge, forgeglobal.com
- Venus Liquidation Inc. (f/k/a Vice Group Holding Inc., et al.), cases.stretto.com
- Vice Media gets court sign-off for bankruptcy loan, reuters.com, May 16, 20
- In re Vice Group Holding Inc., 652 B.R. 423 (2023): Case Brief Summary, Quimbee
How this case file was put together
Every statement on this page carries a numbered note, and every note points to a court record, a regulatory filing or a named publication in the list of sources. Each statement was checked against the text of the sources it cites before it was published: a figure, a date or a name the cited source does not contain was cut rather than kept. Allegations are shown as allegations, with their status at the time of the source (filed, charged, convicted, pleaded, settled, dismissed or pending). Quoted lessons are the words of the person or publication named with them, copied from the cited source; nothing here is our own opinion of why the company failed.
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