NY bankruptcy court approves Vice Media’s sale to investor group for $350m

Bruce Dixon (left) and Hozefa Lokhandwala

A New York bankruptcy judge has approved the sale of Vice Media Group for US$350m to an investor group led by Fortress Investment Group, Soros Fund Management and Monroe Capital.

Under the deal, the consortium will acquire all of the company’s assets, including Vice Studios, Vice TV, Refinery29 and Vice.com, in addition to assuming “significant liabilities” upon close of the transaction.

The US Bankruptcy Court for the Southern District of New York approved the deal on Friday, a day after news broke that the Fortress-led investor group was the buyer.

At the time, it was reported that the investor group would pay around US$225m, although the final number is US$125m north of that. The transaction is expected to close on or around July 7.

Approval of the deal closes a disastrous chapter in the company’s nearly 30-year history.

After years of financial challenges and failed attempts to find a buyer, the company entered Chapter 11 and was put up for auction in May. At its peak, Vice Media Group was valued at around US$5.7bn.

“Following a robust court-supervised process, we are pleased to receive court approval for this transaction, which we believe represents the best path forward for Vice,” said co-CEOs Bruce Dixon and Hozefa Lokhandwala.

“The relationships we have built with our audience, creators, distribution partners, brand and agency constituents are foundational to Vice, and we look forward to strengthening those relationships as we continue to deliver the award-winning storytelling and journalism that Vice is known for.”

Fortress MD Brian Stewart added: “As Vice moves into its next chapter, we look forward to working closely with the company’s leadership team to execute on its strategy.

“We have confidence in the management team and believe that the company is now well-positioned to build on its strong legacy to create significant value for all its stakeholders.”