Bankrupt media company Vice Media — once worth nearly $6 billion — has been sold to a consortium of former lenders that include a fund linked to George Soros for $350 million.
Vice, which was co-founded by the larger-than-life media exec Shane Smith, filed for Chapter 11 bankruptcy protection in May after months of struggling to pay its bills.
Multiple offers for the insolvent media firm emerged but a bankruptcy court judge in the Southern District of New York said in June that the best option came from the group of lenders that also include Fortress Investment Group and Monroe Capital.
“We are very pleased to complete the acquisition of Vice and we are excited to build upon the achievements of one of the most iconic brands in news and entertainment,” Vice and Fortress said in a joint statement late Monday.
They continued: “We look forward to growing a strong business that is committed to serving audiences, brands and partners with award-winning content. With a strong management team in place, Vice is well-positioned to grow its uniquely compelling world class businesses and drive value during its next chapter.”
The deal marks a fire sale for the company, which had boasted a valuation of a whopping $5.7 billion in 2017 under Smith, who then served as CEO.
“This marks the start of an exciting new chapter for Vice” said the company’s current co-CEOs Bruce Dixon and Hozefa Lokhandwala.
Smith, who ran the business as CEO from its founding in 1994 until 2018, when he was replaced by former A+E Networks boss Nancy Dubuc amid a series of reports about alleged a frat house-like culture at the company.
Dubuc, who worked to cut costs and clean up the toxic culture, exited early this year after five years at the helm.
Jesse Angelo, who was Global President of News & Entertainment, left shortly after.
In April, Vice announced that it was slimming down its news division, including cutting jobs and pulling the plug on its signature newscast, “Vice News Tonight.”
This story originally appeared on NYPost
