Investors open ‘new chapter’ by closing Vice Media acquisition

Gangs of London

Vice Media Group has formally closed its US$350m sale to a consortium of former lenders, led by Fortress Investment Group, Soros Fund Management and Monroe Capital.

The deal, first announced in June, came a month after Vice filed for Chapter 11 bankruptcy following a lengthy but ultimately fruitless search for a buyer that led to the company unveiling a raft of “painful but necessary” cuts to staff and programming,

Fortress, Soros and Monroe are now in control of all assets, including UK-based Gangs Of London producer Pulse Films, the Vice TV network, the Vice Studios film & TV unit, a distribution arm, Refinery29, agency Carrot Creative and fashion title i-D.

Bruce Dixon and Hozefa Lokhandwala, who were appointed co-CEO’s at Vice after Nancy Dubuc stepped down in February, said that the deal marked “the start of an exciting new chapter” for the company.

“With the support of our investor group, we now have the resources to strengthen our business, our partnerships and our content creation across all platforms,” said Dixon and Lokhandwala. “Under new ownership and with this leadership team, Vice is positioned to drive our uniquely differentiated brand of news, entertainment and lifestyle content that makes Vice a trusted brand for global audiences and a valued partner to brands, agencies and platforms.”

Re-growing the business

The sale brings an end to the ongoing turmoil surrounding Vice, which had been valued at $5.7bn in 2017 and counted Disney, James Murdoch’s Lupa Systems and Antenna Group among its investors.

However, the firm, which started life as the alternative-punk Vice magazine in the 1990s and grew into a major media brand over the decades, suffered from advertising shifts and declining audiences. It owed almost $475m to Fortress, Soros and Monroe when it filed for bankruptcy.

“We are very pleased to complete the acquisition of Vice and we are excited to build upon the achievements of one of the most iconic brands in news and entertainment. We look forward to growing a strong business that is committed to serving audiences, brands and partners with award-winning content,” said the investment firms in a joint statement.