Digital media company Vice Media Group, which last month filed for Chapter 11 bankruptcy protection, is set to be acquired by investment companies Fortress Investment Group, Soros Fund Management and Monroe Capital, which emerged as the only "qualified" bid on the table, according to a legal filing.
A source disclosed to The Guardian that GoDigital, a privately held multinational group that owns the Latino digital media company NGLmitú, music distributor Cinq Music, and more, had been in negotiations to acquire Vice, but that fell through. In fact, according to Reuters, GoDigital Media had made a higher bid for Vice, but the offer was turned down by the sellers.
Bruce Dixon and Hozefa Lokhandwala, Co-Chief Executives of Vice Media Group, informed staff of the decision in a memo on Thursday morning. “We are providing you with this update in real-time to let you know the company’s intention to move forward with this sale. It still has not been finalized by the court, but once it is, it will mark an important milestone on the road to long-term financial health and stability for VMG,” they said.
“Under new ownership, we look forward to a new chapter in Vice Media Group’s history, with a renewed focus and commitment to creating world-class content for our audiences and partners,” Dixon and Lokhandwala wrote in the memo.
Vice Media was worth as much as US$5.7 billion in 2017 after a fresh funding round, as well as investments from Disney and Fox. The company began as a magazine and has grown to include a movie and TV studio, ad agency, an HBO show, and an alternative news organization. At one point, during its heyday in 2015, Disney had even considered acquiring it outright for US$3 billion.
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