Fortress Investment Group to acquire Vice Media out of bankruptcy

Digital media company Vice Media Group is set to be acquired out of bankruptcy by three investment companies including Fortress Investment Group, Soros Fund Management and Monroe Capital for US $350 million, according to CNN.

Vice Media’s co-chief executives Hozefa Lokhandwala and Bruce Dixon informed Vice employees of its decision in an email sent on Thursday that was seen by The New York Times.

Don't miss: VICE Media Group officially files for Chapter 11 bankruptcy

The email told staff of its intention to move forward with the sale and that while the deal has not been finalised in court, that it will mark and important milestone in its road to "long-term financial health" and stability for the group. 

Under the new ownership, they said, the company looks to refocus and to commit to creating "world-class content" for its audience and partners. 

Media reports revealed that numerous bidders expressed their interest in acquiring VICE, however, only Fortress was deemed "qualified" where other buyers fell short. 

GoDigital Media Group in particular was one of the buyers who actively tried to acquire the company. According to CNBC, VICE would be the GoDigital's largest acquisition as it planned to bid for Vice for around US$300 to US$400 million. Craig Greiwe, chief strategy officer of GoDigital Media Group emphasised that GoDigital was serious in their bid and that they were confident that Vice would prosper under their leadership. Unfortunately, this did not go through. 

The news comes after VICE officially filed for chapter 11 bankruptcy in May. This announcement comes shortly after the company shuttered VICE World News and cancelled VICE News Tonight, its flagship news television programme, which resulted in more than 100 layoffs across the newsroom. In a release to the press at the time, VICE Media Group stated that it agreed to the terms of an asset purchase agreement with a consortium of its lenders.

The filing is the latest in a series of blows to the company, which once took funding at a US$5.7 billion valuation.  In 2019, the company raised US$250 million in debt from investors including Fortress and George Soros's Soros Fund Management.

The Chapter 11 filing states that VICE's management "has determined that it is advisable and in the best interest of the Vice Group Companies to enter into a stalking horse agreement for the sale of substantially all assets and related auction procedures".

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