Vice, a company once worth billions, headed toward bankruptcy

Vice, a digital media company which had charmed the likes of Disney and Fox, is allegedly preparing to file for bankruptcy, said insiders.

According to three individuals closely connected with the operations of the company, the bankruptcy could come in the coming weeks, reports the New York Times.

To avoid declaring bankruptcy, the company has been searching for a potential buyer. However, even with more than five companies interested in acquiring Vice, the chances for that are growing slim.

Despite being worth $5.7 billion after receiving funding from the private-equity firm TPG, Vice is only worth a tiny fraction of that today.

The company has been trying for years to turn a profit but has consistently failed to do so, losing money and repeatedly laying off employees.

It was also disclosed that Vice would continue operating normally and run an auction to sell the company over a 45-day period, with the possibility of Fortress Investment Group taking over the the company.

Since Fortress holds senior debt, it is expected to get paid out first in the event of a sale. However, Disney, which has already written down its investments, is not getting a return, the person said.

"Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning," Vice said in a statement on Monday. "The company, its board and stakeholders continue to be focused on finding the best path for the company."

Vice began as a punk magazine in Montreal more than two decades ago. Over the years, it blossomed into a global media company with a movie studio, an ad agency, a glossy show on HBO and bureaus in far-flung world capitals. Disney, after investing hundreds of millions in Vice, explored buying the company in 2015 for more than $3 billion, according to the two people familiar with the conversations.

More than two decades ago, Vice was launched as a punk magazine in Montreal.

Over the years, it blossomed into a global media company with a movie studio, an ad agency, a glossy show on HBO and bureaus in far-flung world capitals.

According to the two individuals familiar with the conversations, Disney, after investing hundreds of millions in Vice, explored buying the company in 2015 for more than $3 billion.