(DCWatchdog.com) – Socialist billionaire George Soros will take over Vice Media after the liberal media group filed for bankruptcy.
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Vice Media Group features five main divisions ranging from news to creative services. In 2021, it was described as the world’s “largest independent youth media company.”
Best known for its sites Vice News and Motherboard, the pro-left media group was once valued at almost $6 billion.
On Monday, Vice announced it had filed for bankruptcy protection after experiencing “years of financial troubles,” CNBC reports.
It filed Chapter 11 “voluntary petitions for reorganization,” at the US Bankruptcy Court for the Southern District of New York.
The consortium will pay $225 million as a credit bid for the bulk of Vice’s assets and substantial liabilities.
The report points out that in the past few months, Vice Media Group has been implementing a restructuring, including the layoffs of employees throughout its
“Vice is one of several digital media and technology firms forced to restructure this year amid a sluggish economy and weak advertising market,” it adds.
CNBC notes further that another online media company, BuzzFeed, shut down its news division and implemented major layoffs last month.
Vice was started in Canada in 1994 in what is described as a “fringe magazine.” Still, it expanded by focusing on its social media presence and catering to youth audiences.
According to the report, much of Vice’s financial trouble resulted from the success of tech giants Google and Meta in attracting online advertising spending.
If the US Bankruptcy Court for New York’s Southern District approves the sale of Vice Media Group, other parties besides the Soros-led consortium would also be able to make bids for the company.
Among others, the lenders’ bid provisions provide a $20 million cash injection to allow Vice Media Group to keep running during the sale process.
According to the company, the sale would likely be finalized within two to three months.
Vice also announced that its media brands, such as Vice News, Vice TV, Pulse Films, Virtue, Refinery29, and i-D – will continue to operate.
At the same time, its international entities and Vice TV’s joint venture with A&E were not included in its Chapter 11 filing.
“We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business,” commented Vice Co-CEOs Bruce Dixon and Hozefa Lokhandwala.
In their statement, they also claimed the sale process will “strengthen the Company and position VICE for long-term growth.”
Billionaire George Soros, with an estimated net worth of $5 billion, is known for his lavish support of leftist and far-left policies and causes nationwide and internationally.