Vice Media secured debt financing of more than $30,000,000 from a large investor group. The media company is looking to sell itself, despite having millions in debt.
According to the Wall Street Journal Vice has received financing from Fortress Investment Group. This firm does business in credit and private equity as well as “permanent capital vehicle” investments. Vice often invests in senior living and railroads.
Wall Street Journal sources claim that Vice owes millions to vendors and advisers, with some vendors still not receiving payment for over six months. Some companies even sent their accounts directly to collection agencies.
Air.TV is one company that is open to speaking out about its debts. Vice for content and ad placement owes Air.TV $400,000
McDonough commented that Vice had stopped paying McDonough seven months before McDonough made the comment. He also ceased communication.
Vice is also allegedly owing $900,000. Vice also owes Ranker, a polling site where users rank content. Vice claims that Ranker placed content on its partner sites. Vice is allegedly offering video sharing in exchange for a portion of its ad revenue.
According to sources familiar with the matter, Vice owes both the media measurement company Nielsen and digital marketing firm Cardinal Path. They are also late on payments.
Vice originally borrowed $250 million from Fortress in 2019. As such, Fortress would be a benefit from the sale of the media company. Vice sought $1.5 billion valuation last year, despite not meeting its revenue goal of $700m in 2022. This was despite being short by more than $100 million.
Vice Media was founded as a magazine by Gavin McInnes and Suroosh Alvi. Smith still holds 20% of the company while Walt Disney Company has 16%. A&E Networks (20%), George Soros’ Soros Fund Management (10%) are other part-owners.
Vice Media currently includes brands such as Motherboard, Vice News, Refinery29 and Vice TV.