Signs of deepening economic crisis in America, Vice Media applied for bankruptcy

America's big media house has applied for bankruptcy process on behalf of Vice. Fortress Investment Group and Soros Fund Management have bid for the acquisition of the company. Presently the company is continuing its operations.

May 20, 2023 - 11:08
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Signs of deepening economic crisis in America, Vice Media applied for bankruptcy

Along with banks, the effect of the ongoing economic crisis in America is now visible in other sectors as well. American media company Vice has applied for the bankruptcy process. This application has been made by the company at a time when there is a possibility of a US economic recession.
The filing of the bankruptcy process will not affect Vice Media's operations. Apart from this, the company's businesses include media ad agency Virtue, Film Division Plus, and Refinery29.
Lenders to Vice include Fortress Investment Group and Soros Fund Management, which are among the frontrunners to acquire the company. A bid of $225 million has been submitted by the group, which also includes the company's existing loans. The company has $834 million in debt outstanding, according to a filing by Vice Media.
A $20 million loan has been taken from Vice Media for operations and if no better bid is found, Vice Media will be acquired by Fortress Investment Group and Soros Fund Management.
According to a New York Times report, at one point the company's valuation had reached $5.7 billion. Funds were mixed in the company from investors like TPG and Disney.
Let us tell you, at present the digital media industry is going through a phase of struggle. BuzzFeed and Vox Media company are also going through a crisis. Recently, funds have been raised by Vox Media at half the price as compared to the 2015 valuation.

Muskan Kumawat Journalist & Writer