Vice is said to be near bankruptcy, as per reports by the New York Times released tonight. The publication is said to be preparing to file for bankruptcy amid its failure to turn a profit.
The filing of bankruptcy is expected to arrive in the “coming weeks,” with the New York Times citing three separate people that are said to have knowledge on the matter. Vice is currently working to find a buyer in an effort to avoid bankruptcy, however has come up empty handed so far in that process.
At least five companies are said to be interested in acquiring the ailing publisher, however as the days go on those chances are fading. If a bankruptcy were to occur, debtholder Fortress Investment Group is expected to control the company, under which circumstances operations would continue as normal while an auction is to take place for the sale of its assets.
Disney and Fox, whom previously invested in the publisher, are meanwhile expected to see their equity position zero out. Disney previously explored acquiring the company eight years ago for a rumoured price tag of $3.0 billion, however Vice was never able to close on that transaction. Two years later after a funding round with TPG, a private equity firm, the publisher was valued at $5.7 billion, however the value of the firms equity is quickly approaching zero as it sits on the brink of bankruptcy.
The reports of an imminent filing follows employees last week being informed that Vice World News would be shuttering as the firm grapples with liquidity issues.
Information for this briefing was found via the New York Times and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
