The American “Vice” media group announced its bankruptcy, due to the decline in its advertising revenues, in a news that was expected in the market a few weeks ago.
On Monday, the company released a statement saying that a group led by Fortress Investment Group, who is owed money by Vice, has proposed to buy out the media group for $225 million. The proposal is open to other bids that may be higher than their offer.
Vice Media Group, which was valued at $5.7 billion in 2017, produces content in 25 languages and has more than 30 offices around the world.
The media group generates its revenue through advertisements and allows viewers to access its content for free.
Due to the decline in the economy, the advertising market is now focused mainly on big tech companies like “Google” and “Meta“.
The statement means that Vice will operate as usual even while going through the process of bankruptcy.
Vice was one of the first digital media outlets to emerge in the early 2000s, influencing the creation of other sites like Buzzfeed and the Huffington Post.
The media industry, whose content is often available for free, is facing a challenging economic situation. As a result, many prominent media outlets, from the public broadcaster “NRB” to “Washington Post” and “CNN,” have witnessed resignations by their staff.
The BuzzFeed News website was shut down and 180 employees were fired by BuzzFeed in April.