Vice Media slashes costs amid efforts to sell studio business
Vice Media has brought in consultancy AlixPartners to review its business as it looks to cut costs amid efforts to sell its studio business, The Information reports.
Why it matters: The belt-tightening is both a way to appear more attractive to a potential buyer and a reflection of the challenges that many digital media companies are facing.
- At the same time, studios have become attractive acquisition targets as the rise of streaming increases the demand for content.
Between the lines: Vice is hardly alone in being in cost-cutting mode amid a sector-wide advertising revenue downturn that's been steeper than expected.
- Last month, Snap warned it would likely miss its second-quarter earnings forecasts, citing "macroeconomic conditions." Naturally, Snap's stock price cratered after that.
- BuzzFeed, which has taken a beating in its first year as a public company, earlier this year said it would cut staff at its news division.
Details: Among the cost-cutting measures, Vice is slowing down hiring in a bid to get to $25 million in EBITDA, according to The Information.
- The company is internally projecting overall revenue to increase slightly from $680 million to $700 million this year.