New York

Vice Media, the brash digital media disruptor that once charmed media giants like Disney and Fox into investing, is reportedly on the brink of filing for bankruptcy. 

Advertisment

While the company is still looking for a potential buyer to avoid bankruptcy, the chances of a successful sale are dwindling, the New York Times reported. 

Vice, which began as a punk magazine in the Canadian city of Montreal over two decades ago, slowly evolved into a global media organisation with a film studio, an ad agency, and even an HBO show.

However, the company consistently failed to earn a profit, losing money and laying off employees left and right. In fact, Vice's value today is a tiny fraction of what it was worth in 2017 - $5.7 billion, after a funding round from private equity firm TPG.

Advertisment

If Vice does file for bankruptcy, Fortress Investment Group, the company's largest debtholder, could end up controlling the company. The good news is that Vice will continue operating normally and hold a 45-day auction to sell the company.

Fortress is the most likely to acquire it, so the company's fate appears to be in good hands.Unlike Vice's other investors, which have included Disney and Fox, Fortress holds the senior debt, which implies it is paid first in the case of a sale. Disney has already written down its investments and is not receiving a return.

Vice has already lost a lot of its luster, and the closure of its Vice World News division last week was just another blow to its already shaky foundation. 

Advertisment

Employees who saw the division's aggressive coverage, especially when its co-founder, Shane Smith, would report from dangerous locations like North Korea, were left reeling.

The bankruptcy of Vice Media will be a tragic end to the story of the new-media interloper that once sought to overthrow traditional media outlets. 

In the meantime, Vice continues to evaluate its options, with its board and stakeholders focused on finding the best path forward.