Vice Media files for bankruptcy, continues year-long search for buyer

Vice Media is currently considering a deal to be acquired by Fortress Investment Group and Soros Fund Management for $400 million as the company continues the year-long search for the buyer.

The acquisition is projected to result in a significant drop from $5.7 billion valuation of 2017, according to a Friday report in the Wall Street Journal. The terms of the deal would  includes debts and eliminate “nearly every Vice stockholder," including a private-equity firm TPG Group, Sixth Street Partners and James Murdoch, a recent report by The Journal states. The company currently awaits court-supervised sales under Chapter 1, expected to be filed as soon as next week. According to the WSJ, “another buyer could emerge and outbid Vice’s lenders for control in bankruptcy court, but Fortress is in prime position to take control of the company, which has struggled to find a buyer over a nearly year-long sale process.”

News of the acquisition comes after a The New York Times report stated the company's plans to file for bankruptcy and the confirming the interest of five companies. Previously, 21st Century Fox and Disney considered acquiring Vice for more than $3 billion, but never followed through with a proposal. California-based GoDigital Media Group and business accelerator Group Black each separately placed a bid on the company of $400 million. but didn't finalize a sale. If accetpted, Fortress and Soros' proposal would see co-founder and executive chairman Shane Smith, as well as much of top management's retainment.

Last week, Vice Media confirmed several layoffs and the discontinuation of "Vice News Tonight," its nightly show on Vice TV that had previously aired on HBO. The news follows the departure of Jesse Angelo, Vice Media's global president of news and entertainment, in March. The company's five main busiess units are Vice.com, the Vice Studios film and TV production unit; the Vice TV television network; Vice News; and creative agency Virtue. Its slate of entertainment brands also includes Refinery29, London-based Pulse Films; and i-D.