The company that owns Vice and Motherboard, Vice Media Group, has filed for bankruptcy in the United States. The company is set to be sold to a group of its lenders for $225 million. Despite the bankruptcy, Vice will continue to operate during the process and aims to emerge as a financially stronger company in two to three months.
Vice was founded in 1994 and has expanded to operate in over 30 countries, offering edgy, youth-focused content across various mediums. However, the company has faced financial challenges, with most online ad revenues going to tech giants like Google and Facebook. Previous plans to go public through a merger failed, leading to layoffs and the shutdown of its flagship TV program. Similar financial difficulties have been experienced by other online platforms like BuzzFeed.
By filing for Chapter 11 bankruptcy protection, Vice can reorganize its debts or sell parts of the business. The lenders have approved $20 million to support the company during the bankruptcy process, and if no better offers emerge, the lenders will acquire Vice Media for $225 million. The entire sale process is expected to take around two to three months.
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