Vice Media declares bankruptcy as its advertising revenue de

On Monday, Vice Media announced that, in order to facilitate the company's sale, it had filed for Chapter 11 bankruptcy protection. Among the rising stars of a new breed of digital media firms, Vice, which focuses on millennials and is known for its edgy news and lifestyle content, struggled as advertising revenues decreased.

Fortress Investment Group, Soros Fund Management, and Monroe Capital are among the lenders to Vice, and Vice stated that they had reached an agreement on the terms of an asset purchase agreement with them. The consortium had presented a credit offer of about $225 million "For considerably the Organization's all's resources, notwithstanding the suspicion of huge liabilities after shutting," Vice Media said.

In a statement, the organization said, "Bad habit has documented deliberate petitions for rearrangement under Part 11 in the US Chapter 11 Court for the Southern Region of New York to work with the deal." The company with headquarters in New York stated in its Chapter 11 petition to the court that it had estimated assets of $500 million to $1 billion. Additionally, it estimated that it owed over 5,000 creditors.

In 2017, Vice Media was regarded at $5.7 billion more than the market capitalization of The New York Times by then. After BuzzFeed News, another free digital media company went out of business due to a lack of ad revenue and an inability to attract new investments, they took on debt to stay afloat.