After a 29-year run, Vice files for bankruptcy
TechCrunchDec 25, 2022
The Facts
On Monday, Vice Media Group (VMG) filed for Chapter 11 bankruptcy protection in the Southern District of New York to facilitate its sale to a group of its lenders.
A consortium of lenders, including Fortress Investment Group and Soros Fund Management, agreed to provide $20M to help fund VMG's operations during bankruptcy.
The Spin
Narrative A
VMG, like other digital media outlets, believed it would generate substantial online ad revenues by attracting millions of young readers through social media networks; unfortunately, a bulk of its profits went to tech giants. Vice's bankruptcy is a symptom of both recent and longer-term downward trends in the economy at large and the media industry specifically. It is a reminder that a business tethered to social media for its growth must develop multiple streams of profit beyond just advertising.
Narrative B
Though Vice and the media industry may paint the company's bankruptcy as a consequence of economic pressures, in fact, this is the result of Vice's incompetent and greedy leadership. Vice's downfall was inevitable, as one of its founders, Shane Smith, was a conman who convinced investors that VMG was the future of news and entertainment. Smith made money hand over fist while employees were mistreated. Vice was doomed to fail.
