Soros to Buy Vice Media
George Soros' investment management firm and Fortress Investment
Group are nearing a deal to purchase struggling Vice Media Group in a
deal worth about $400 million, reports The Wall Street Journal.
Vice, once valued at $5.7 billion, is considering the sale to avoid declaring bankruptcy.
Other stockholders holding debt with the company, such as TPG Group,
Sixth Street Partners, and James Murdoch, son of Fox News CEO Ruper
Murdoch, will likely see their interests wiped out in the
court-supervised transaction, the report said.
The company tried unsuccessfully to arrange a sale for more than a
year, and recently took out a "lifeline" $30 million loan from Fortress
after not being able to pay its vendors, according to Variety.
"Vice Media Group has been engaged in a comprehensive evaluation of
strategic alternatives and planning. The company, its board and
stakeholders continue to be focused on finding the best path for the
company," the company spokesperson told Reuters in an emailed statement.
Its potential bankruptcy comes as several other media and technology
firms have had to downsize in recent months due to a challenging economy
and a weak advertising market.
The moves also come after Vice cancelled its flagship "Vice News
Tonight" program on Vice TV and issued layoffs throughout the
organization.
Its five main ventures include Vice.com, the Vice Studios film and TV
production unit; the Vice TV television network; Vice News; and
creative agency Virtue, the report said.