Vice, a Beleaguered Avatar of New Media, Hangs a ‘For Sale’ Sign

Vice, which started as a punk magazine in Canada in the 1990s before relocating to New York, is a prominent example of the bullish-to-bearish outlook for new media companies over the past decade. Backed by major companies like Disney and 21st Century Fox, which wanted to tap into Vice’s young, hip and digitally-savvy audience, Mr. Smith struck deal after deal that expanded the company into a big digital presence, a TV network and a film-production company.

But in recent years, Vice has not kept that momentum, struggling to live up to the promise of its lofty valuation. Several other media companies have run into headwinds in the digital advertising market, including BuzzFeed and Vox Media. On Friday, Ms. Dubuc told employees the company would most likely lay off additional staff, according to a memo to employees from Ms. Dubuc, the same day that Vox Media said it was cutting roughly 7 percent of its work force.

Ken Doctor, a local media entrepreneur and media business analyst, said that Vice’s approach to news, often focusing on under-covered stories, has been overshadowed over time by its financial difficulties and the pressure it has faced from investors.

“It’s undeniable that it created real value through that innovation, but the hype ate the reality,” Mr. Doctor said. “That was fueled by irrational investment, from the likes of Disney and others, sensing that there was something new here, but ignoring some of the fundamentals of news media business realities.”

Ms. Dubuc said the company’s board was determined to sell for several reasons. Even though Vice is still unprofitable, the company cut its losses in the last year by about 50 percent, she said, and it is aiming to reach break-even by this year. Ms. Dubuc also said the company saw single-digit increases in its revenue this year, despite a bearish ad market.

Article source: https://www.nytimes.com/2023/01/20/business/media/vice-puts-itself-up-for-sale.html