Vice filed for bankruptcy
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Vice filed for bankruptcy. The announcement had been expected for several weeks. The causes of the closure of the American online newspaper are mainly due to the collapse of the advertising market. A consortium, including the investment firm Fortress Investment Group, Vice’s main creditor, will take control of the group for $225 million. But the hope is that a buyer capable of paying more will arrive.
Vice Media Group, valued at $5.7 billion in 2017, produces content in 25 languages, with over 30 newsrooms worldwide. The group has a business model based on free access to content and the turnover came mainly from online advertising. But with the deterioration of the economic situation, the advertising market has shrunk and what remains mostly enters the orbit of giants like Google and Facebook.
Vice will continue to publish its articles during the bankruptcy proceedings. In the early 2010s, Vice, like BuzzFeed and the Huffington Post, embodied a new generation of news media. Able, thanks to a strong and aggressive online presence, to threaten the old media business.
But in recent years several of these publications have suffered from the changed market conditions, mainly due to the collapse of online advertising. BuzzFeed announced in late April that it was shutting down its BuzzFeed News site, resulting in 180 layoffs.
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