Vice Media has made layoffs among its staff.
The New York Times noted that the company could file for bankruptcy.
In 2017, the medium was valued at 5.7 billion dollars.
Vice Media could file for bankruptcy in the coming weeks, It is the rumor that has gained strength after canceling its star program Vice News Tonight and after a staff cut, according to a report in the newspaper The New York Times, At the same time, two people linked to the company indicated that they is considering the put option to avoid going bankrupt.
The entertainment company started as a magazine punk in Canada and is credited with creating the movement hipsterin addition to being pioneers of “immersion journalism”, which consists of covering information on complicated topics directly, something like animal documentaries, but with social issues.
Vice News operates through a pay television channel, making documentaries, reports and other multimedia content. In 2013, the outlet decided to sell 2.5 percent of the company to 21st Century Fox for 70 million dollars, according to the Spanish portal El Diario. In 2017 it was valued at 5.7 billion dollars.
In addition to that, another of his sources of business are his clothing lines: Refinery 29, Unbothered, WE ARE, 29ROOMS.
The program Vice News Tonight was launched in 2016 as a newscast on HBOHowever, the relationship ended in 2019 and it began to be broadcast on its own channel Vice TV.
Companies dedicated to free digital journalism are having problems to continue standing, since they are not enough to cover expenses, as happened with BuzzFeedNewswho in previous weeks had to announce its closure and dismissal of some 1,200 employees.
In addition, advertising revenue is mostly invested in sites like Google, Facebook and social networks in general, this income is the one that mainly supports various sectors.
Some of the measures that Vice Media, which has 1,500 employees, has taken are Eliminate 100 jobs as a reorganization strategy and end the broadcast in May of the weekly news program Vice News Tonightas reported by The Wall Street Journal (TWSJ).
“We are transforming Vice News to better withstand market realities and more closely align with how and where we see our audiences engage most with our content,” Co-CEOs Bruce Dixon and Hozefa Lokhandwala said in an announcement to staff. which was leaked to the TWSJ.
It is worth mentioning that in past years Disney and Fox tried to acquire the brand; This first one for 3 billion dollars, however, the negotiations did not materialize, now they would be looking for new buyers, but if the rumors about declaring bankruptcy materialized, they would complicate their situation.
A study carried out by Statista, to find out the frequency of viewing Vice News in the United States in 2017, found that 9 percent of respondents ages 18 to 29 said they watched the show about once a week. The second age range that consumed it the most is from 55 to 64 years.