Vice Media Set To File For Bankruptcy

Vice Media Group, the company behind popular media websites such as Vice and Motherboard, is preparing to file for bankruptcy, the New York Times reported, citing people with knowledge of its operations.

Photo Insert: Vice Media was among a group of digital media ventures that once commanded rich valuations.

The media firm has received interest from five companies and might consider a sale to avoid bankruptcy, the NYT report said, adding that in the event of a bankruptcy, which could happen in the coming weeks, Vice’s debtholder Fortress Investment Group could end up controlling the company.

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, Reuters also reported.

Earlier this month, BuzzFeed Inc. said it would shutter its news division as it succumbed to the challenges of its digital-first business model. Last week, Vice Media said it will cancel the popular TV program “Vice News Tonight.”

Vice Media was among a group of digital media ventures that once commanded rich valuations. It rose to prominence alongside its provocative co-founder, Shane Smith, who built his media empire from a single Canadian magazine.

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