Vice Media borrows $30 million from investment group in hopes of selling debt-ridden company

Vice Media has secured more than $30 million in debt financing from a large investment group, as the media company looks to sell itself despite being millions of dollars in debt.

As reported by the Wall Street Journal, Vice is taking financing from Fortress Investment Group, a firm that does business in credit, private equity, and "permanent capital vehicles." The company often invests in railroads and senior living.

According to a source of the Wall Street Journal, Vice owes millions of dollars to advisers and vendors, some of whom haven't been paid in over six months. Some of the companies have even sent their accounts to collections agencies.

Air.TV is one of the companies that is willing to come forward about the debts, providing a statement to the New York outlet about an outstanding $400,000 owed by Vice for ad and content placement.

“We can survive this, but this amount for us is crushing,” says Air.TV CEO and founder Luke McDonough.

Vice allegedly stopped payments seven months prior to McDonough's comment and has even ceased communications.

Ranker, a polling website where users rank content, is also allegedly owed by Vice to the tune of $900,000 for placing content on its partner websites. The video sharing is said to be in exchange for a share of Vice's ad revenue.

Those familiar with the matter tell the Wall Street Journal that Vice owes the media measurement company Nielsen as well as digital marketing firm Cardinal Path and is late with payments to those organizations as well.

Fortress was part of a group of firms that originally lent Vice $250 million in 2019, and as such would benefit from a sale of the media company. Vice most recently sought a valuation of $1.5 billion despite missing a revenue goal of $700 million in 2022, coming short by over $100 million.

Vice Media was originally started as a magazine co-founded by Gavin McInnes, Suroosh Alvi, and Shane Smith. Smith still owns a 20% share in the company, while the Walt Disney Company owns 16%. Other part-owners include A&E Networks (20%) and George Soros' Soros Fund Management (10%).

Brands currently under the Vice Media umbrella include Vice News, Motherboard, Refinery29, and Vice TV.

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