Vice Media Group reportedly plans to file for bankruptcy

Vice Media Group is preparing to file for bankruptcy, according to the New York Times who quoted people familiar with the matter.

The filing is reportedly expected to come within the next few weeks as the struggling company continues to look for a buyer which could help it avoids bankruptcy. 

According to media reports, at least five companies have expressed interest in acquiring Vice so far. However, the chances of acquisition continue to remain slim, according to people in the know. 

If Vice does go bankrupt, Vice’s largest debtholder, Fortress Investment Group, could end up controlling the company. Vice would then continue operating normally while running an auction to see the company over a 45-day period. Fortress, in that case, will be the company most likely to acquire Vice.

Some of Vice's other heavyweights include Disney and Fox. However, since Fortress holds senior debt, it will get paid out first should the company be sold. Disney reportedly will not get a return.

Don't miss: Vice Media Group APAC newsroom team hit hard by global restructure

The news comes just days after VMG's APAC newsroom was hit by the restructuring of its global news operations. Announcing the news on Twitter SEA editor Alastair McCready said, "Our APAC team has been decimated amid widespread layoffs today at VICE World News. A sad day for us all, but that means some of these fantastic reporters and editors in Hong Kong, Thailand, Pakistan, India, Singapore, the Philippines, Australia & Japan are available."

The move came as the company looked to restructure its global news operation by shutting down its popular Vice News Tonight broadcast and cutting jobs, according to the Wall Street Journal (WSJ). The news was announced to employees in a memo by co-CEOs Bruce Dixon and Hozefa Lokhandwala that was seen by WSJ. In it, Dixon and Lokhandwala explained that in response to the current market conditions and business realities facing the group and the media industry in general, that it needs to make some "painful but necessary" reduction. The changes will primarily be focused on its news and business divisions but the exact number of jobs to be cut were not specified.

The memo noted that the cuts were being done to transform Vice News such that it will better be able to withstand market realities and so that they can closely align to how it sees its audiences engaging with its content. They continued by saying that the company needs to accelerate its transition toward platforms such as Paramount Global’s Paramount+ with Showtime, free ad-supported streaming channels as well as YouTube and TikTok.

Related articles:
VICE Media's VIRTUE amps up APAC strategy team with Zoe Chen
VICE Media's VIRTUE beefs up SG hub with new associate creative chief
Mediabrands Content Studio and Vice Media Group join forces globally for creative production