Fortress seals acquisition deal for Vice Media out of bankruptcy

Fortress Investment Group, along with a group of other buyers, has reportedly acquired Vice Media out of bankruptcy. Although multiple bidders submitted proposals, only Fortress was deemed qualified. The bankruptcy judge must approve the deal before it can go forward. The cost of the deal has not been revealed, but it was speculated in May to be around $225 million. Fortress is a long-time backer of Vice, having lent the company $250 million in 2019, along with investors such as Soros Fund Management and Monroe Capital. Vice Media has estimated liabilities of between $500 million and $1 billion, including $475 million owed to Fortress, and has struggled to turn a profit despite having raised $1.6 billion over the years from investors such as Disney and James Murdoch’s Lupa Systems. The firm’s attempts to raise cash previously left it with complex organizational structures that made it difficult to fulfil its obligations, and its efforts to go public through a SPAC merger in 2021 failed. Prior to the bankruptcy filing, Vice cancelled Vice News Tonight and announced a restructuring that included layoffs.