Vice, the digital media disrupter that wooed big companies like Disney and Fox into investing before a catastrophic crash-landing, is getting ready to file for bankruptcy.
The online media company had been looking for a buyer but it is now preparing for a potential bankruptcy filing in the coming weeks. About a week ago, the online video outlet made staff reductions and cancelled its marquee programme.
Vice, which runs the same-named cable channel and produces documentaries and other video content for its own platforms and others, had a previous valuation of $5.7 billion. Walt Disney Co. and Fox Corp. were investors, though it's possible that their equity is now worthless. At the moment fortress Investment Group is its biggest debt holder, as per New York Times.
The quick demise of the company highlights the difficulties faced by digital media organisations, who are struggling as advertisers reduce expenditure in an unstable economic climate and shift marketing towards internet platforms like Facebook, Google, and TikTok.
Journalism is a target for cost-cutting because it might be more expensive than other types of online material.