Vice Media secures $30M in new debt financing
Vice Media has raised more than $30 million in debt financing from Fortress Investment Group, the Wall Street Journal reports.
Why it matters: The loan helps alleviate the digital publisher's financial struggles as it seeks a buyer.
Details: Fortress was reportedly already an investor in Vice, having contributed to its $250 million debt round in 2019. The new financing extends the maturity on an existing loan that was due at the end of 2022, per WSJ.
- Fortress is now "one of the first in line to get paid in the event that the company is sold," the WSJ writes.
- The WSJ also reported Vice has missed more than a million dollars in payments to vendors, including Ranker, AIR.TV, Nielsen and Cardinal Path.
- Vice declined to comment. Fortress did not respond to a request for comment.
Catch up quick: Vice has revisited its sale process amid stalled talks with Saudi-backed Greek broadcaster Antenna Group, Sara Fischer reported last month. While Vice was valued at $5.7 billion in 2017, it now could be priced at less than $1 billion, CNBC reported.
- The company had missed its revenue target by more than $100 million and remains unprofitable, WSJ previously reported.
💭 Kerry's thought bubble: In an alternative reality, Disney acquired Vice. In reality, Vice's dire straits became abundantly clear when Disney wrote off its investment in 2019.
- As Nancy Dubuc, who joined as CEO in 2018, told the New York Times last month, "When I walked in here, it was unclear whether the company could survive."
- Its future still remains a mystery with discussions to sell its business in parts as it continues to lay off staffers and cut costs.