The well-known alternative media platform Vice Media plans to file for bankruptcy. According to the Guardian, the company, which was valued at $5.7 billion in 2017, is now seeking a buyer and is being sold for $1.5 billion.
They are currently in negotiations with five companies, and if the acquisition does not succeed, they will be forced to declare bankruptcy.
Vice Media was founded in 1994 in Montreal. Initially, they only published a magazine, but later expanded into producing informational video content, long-form documentary series, and even advertising business.
The Death of Digital Media
However, in February of this year, they incurred $30 million in debt to pay off part of their liabilities, and subsequently began laying off an increasing number of employees. Last week, they also shut down the editorial team of Vice News Tonight.
The news of the impending bankruptcy came after BuzzFeed shut down its news division and announced the layoff of about 180 employees (15 percent of its workforce), while Paper Magazine laid off its journalism and editorial team. Only the executive editor, Justin Morin, will remain with the company until the end of the month to complete announced projects.
Paper Magazine is also seeking a buyer, and, just like Vice and BuzzFeed, they have suffered due to an excessive reliance on advertising revenues that have shifted to social platforms and reduced investment in digital media.
