Vice Media
Vice Media Group LLC is an American-Canadian digital media and broadcasting company. As of June 2021, the Vice Media Group included five main business areas: Vice.com (digital content); Vice Studios (film and TV production); Vice TV (also known as Viceland); Vice News; and Virtue (an agency offering creative services). It was cited as the largest independent youth media company in the world, with 35 offices.[9]
Company type
1994
$125 million (2012)[6]
Fortress Investment Group, Soros Fund Management, and Monroe Capital[7]
1,000+[8]
Developing from Vice magazine, originally founded and based in Montreal and co-founded by Suroosh Alvi,[10] Shane Smith, and Gavin McInnes,[11] Vice expanded primarily into youth and young adult-focused digital media. This included online content verticals and related web series, the news division Vice News, a film production studio and a record label, among other properties. Vice re-located to New York City in 2001. Vice Media originally broadcast their news programs on HBO, including the Emmy-winning[12] weekly documentary series Vice, which premiered in April 2013. Vice features segments on global issues hosted by co-founders Smith and Alvi, and a rotating cast of correspondents.[13][14] They also broadcast Vice News Tonight, which premiered 10 October 2016, showcased a nightly roundup of global news, technology, the environment, economics, and pop culture while eschewing traditional news anchors.[15][16][17] On 10 June 2019, HBO announced the news program's cancellation in addition to ending relations with Vice Media after a seven-year partnership.[18] In August 2019, it was reported that the company was laying off staff as part of a shift towards news that would involve merging Viceland and Vice News.[19]
In April 2023, it was announced that Vice Media was restructuring and downsizing its news division.[20][21][22] In May, Vice filed for Chapter 11 bankruptcy[23] and agreed to be acquired by a consortium led by Fortress Investment Group for $350 million in June.[7] In February 2024, CEO Bruce Dixon announced additional layoffs and that the Vice.com website would cease publishing content, instead partnering with other media companies to distribute its content.[24][25]
History[edit]
Founding and early years (1994–2005)[edit]
Vice Media founders Shane Smith,[26] Suroosh Alvi[10] and Gavin McInnes[27] launched the magazine Voice of Montreal in October 1994 in Montreal, Quebec, Canada with government funding, to cover music, art, trends and drug culture not covered in print.[28] The magazine was an alternative to the Montreal Mirror, then perceived as too mainstream by the Montreal alternative English-speaking scene. During the 1990s, Montreal's Plateau Mont-Royal/Mile-End neighbourhood was home to a burgeoning subculture with the advent of collectives such as Godspeed You! Black Emperor, Dummies Theatre, Bran Van 3000 and later Arcade Fire.[29][30]
They changed the name to Vice in 1996, and as the magazine became more successful, the company began to find it difficult to scale their operations while based in Canada.[31] Following an investment of $4 million by Canadian investor Richard Szalwinski, Vice relocated to New York City in 1999. In 2001, the co-founders bought Vice back and moved to new offices in Williamsburg, Brooklyn.[32]
Digital expansion (2006–2011)[edit]
In 2006, on the advice of creative director Spike Jonze, Vice began expanding into digital video, launching new video service VBS.tv as a joint venture with MTV Networks.[33][34] VBS gained a fan base with shows like The Vice Guide To Travel, Epicly Later'd, Toxic and Hamilton's Pharmacopeia.[35]
In 2007, Vice Media began expanding its digital video operation, launching new channels, such as Motherboard (tech), Noisey (music), and The Creators Project, an arts/technology site founded in partnership with Intel. Vice Media would later launch sites around electronic music culture (Thump), global news (Vice News), food (Munchies) and sports (Vice Sports). Additionally, Vice Media launched Virtue Worldwide, a creative services agency, to expand their capabilities for work around their platforms.[36] During this time, Santiago Stelley was the director of content of VBS.tv (2006–2010) and creative director of Vice Media (2010–2012).[37]
In January 2008, co-founder Gavin McInnes left Vice Media due to "creative differences" with the company,[11] and founded the website streetcarnage.com. He later co-founded Rooster, an advertising agency, and became a far-right activist, founding the Proud Boys.[38]
According to Columbia Journalism Review, Vice has altered shots during the editing process in pursuit of more entertaining or impressive scenes. In a 2011 documentary on Libya, a voiceover from the reporter claims that he had gone to the frontlines amidst an offensive, while in contrast a source claims the reporter did not make the trip, with only a cameraman going there.[39]
Further expansion (2012–2017)[edit]
In 2012, Vice Media continued to expand its coverage focused around news and current events.
With the end of VBS.tv, Vice began releasing films like UK's Scariest Debt Collector, Swansea Love Story, World's Scariest Drug and Inside the Superhuman World of the Iceman through their main website and YouTube channel, as well as new series like Slutever, Fringes, Love Industry and High Society.[40]
In mid-August 2013, Rupert Murdoch's 21st Century Fox invested US$70 million in Vice Media, resulting in a 5% stake. Following the announcement, Smith explained: "We have set ourselves up to build a global platform but we have maintained control."[41] In 2013, Vice Media premiered a new 30-minute news program for HBO titled Vice, executive produced by Bill Maher. In 2014, the second season of the show won a Creative Arts Emmy Award for Outstanding Informational Series or Special in the 66th Primetime Creative Arts Emmy Awards.[42] In 2014, Vice Media launched its news channel, Vice News, which almost immediately gained global attention for its coverage of protests and conflict in Ukraine and Venezuela. As of October 2014, the editor of BBC Radio 1's Newsbeat claimed the BBC was "playing catch-up" to Vice News.[43]
Vice Media has routinely advocated for their "immersionist" brand of journalism in the pursuit of more authentic and interesting stories. Their founders and editors have regularly garnered controversy from the likes of The New York Times' David Carr, who bristled in an exchange with Shane Smith in the 2011 documentary Page One: Inside the New York Times. In a 2014 Time column, Carr said that Vice had since grown into a strong news entity. In August 2014, Carr published a New York Times column further reversing his earlier criticism of Vice, saying: "Being the crusty old-media scold felt good at the time, but recent events suggest that Vice is deadly serious about doing real news that people, yes, even young people, will actually watch."[44]
On 2 July 2014, Vice Media announced that it would be relocating into a warehouse space in Williamsburg that had been occupied by the independent arts spaces and concert venues 285 Kent, Death by Audio and Glasslands, among others. Vice and the building property owners facilitated the clearance of the building and the displacement of the existing creative tenants.[45] Vice spent US$20 million to renovate the 60,000-square-foot (5,600 m2) building as part of an eight-year lease,[46] facilitating the establishment of new production facilities with full broadcast capabilities, and received an offer of US$6.5 million in tax credits from New York state's Empire State Development.[47] In August 2014, A&E Networks, a television group jointly owned by The Walt Disney Company and Hearst Corporation, made a US$250-million investment in Vice Media for an ownership stake of 10%.[48] In November and December 2015, Disney made two additional individual investments of US$200 million totalling $400 million.[49][50]
On 26 March 2015, HBO announced it would renew its contract to broadcast the weekly Vice documentary series for four years, while expanding the annual broadcast schedule from 14 to nearly 30 episodes.[51] The network also announced Vice would be launching a nightly news program. The show, entitled Vice News Tonight, premiered on 10 October 2016 and was planned to run 48 weeks each year, featuring pre-edited video and graphics segments covering global news, technology, the environment, economics and pop culture, while eschewing the use of live TV anchors.[15][16][17][52] In November 2015, Vice and A&E Networks announced Viceland, a then-upcoming cable network that would feature Vice-produced content.[53][54][55]
On 14 March 2017, Vice announced an expanded original programming deal with Snap Inc. The new deal built on Vice's previous deal to serve as a 2015 global launch partner on the Snapchat Discover platform. The first program planned under the new deal was Hungry Hearts with Action Bronson, starring the titular rapper.[56] That same month, Vice announced a wide range of content deals which would make its programming available in more than 80 territories by the end of 2017.[57]
In June 2017, Vice secured a $450 million investment from private-equity firm TPG Capital to increase spending on scripted programming and ongoing international expansion. As a result of the deal, Vice Media was valued at $5.7 billion.[58] In September 2018, Disney wrote down its investment in Vice by $157 million. Disney acquired Fox's stake in Vice when its acquisition of 21st Century Fox completed in March 2019.[59]
On 23 December 2017, The New York Times reported that there had been four settlements involving allegations of sexual harassment or defamation against Vice employees. In addition, over 20 other women stated that they had experienced or witnessed sexual misconduct, including unwanted kisses, groping, lewd remarks and propositions for sex at the company. In a statement provided to The New York Times, Vice co-founders Shane Smith and Suroosh Alvi said, "from the top down, we have failed as a company to create a safe and inclusive workplace where everyone, especially women, can feel respected and thrive."[60][61][62]
In January 2018, Vice's COO/CFO Sarah Broderick sent a memo to staff on 2 January 2018 announcing President Creighton had volunteered to go on temporary leave whilst a new investigation into a $135,000 settlement from a case the company paid in 2016 to a former employee who alleged she was fired after turning him down, and the suspension of Mike Germano, who had served as chief digital officer. Germano founded Carrot Creative, which was acquired by Vice in 2013; he was accused of pulling a former colleague onto his lap at a company party, as well as telling his former strategist Amanda Rue he originally did not want to hire her "because he wanted to have sex with her."[63] Vice has also been criticized by current and former employees for featuring work by Terry Richardson, a photographer facing accusations of sexual abuse by multiple models.[64] In another documentary, a former female employee covering a story about sex workers in a developing country said Vice attempted to "sensationalize and exploit" the women depicted. In one occasion, producers requested her to go undercover as a prostitute, which she refused. She also remarks being oriented to swear more while on camera.[39]
Decline (2018–2022)[edit]
In March 2018, Vice Media co-founder Shane Smith announced he would no longer continue as CEO and would take on the new title of Executive Chairman. Former A+E Networks CEO Nancy Dubuc succeeded Smith as CEO.[65] "Smith will now be focused on creating content and strategic deals and partnerships to help grow the company."[66] On 20 August 2018, Vice's Munchies and Fremantle Media signed a deal with Triple Five Group to gain control of the food hall at American Dream Meadowlands. The food hall was expected to open in April 2019.[67][68] In November 2018, The Wall Street Journal reported that Vice Media was looking to trim its workforce by 10–15%, relying on attrition rather than layoffs.[69] The same month, CEO Nancy Dubuc told an audience at The New York Times Dealbook conference that Vice would return to profitability the following year.[70][71][72] In March 2019, it was reported that Vice Media was looking to raise another $200 million in funding.[73][74]
On 1 May 2019, Vice consolidated many of its web channels back into one central platform turning them into feature sections. The move included independent Munchies, Noisey, Motherboard, Broadly, Free, Amuse, Tonic, Waypoint and Vice Sports. Vice also ended its block on the ad industry's keyword blacklist of 25 terms.[75] On 3 May 2019, Vice Media announced that it raised $250 million in debt from George Soros and other investors.[76] In October, Vice Media announced that it was acquiring Refinery29.[77] The deal, worth a reported $400 million,[78] valued the combined company at $4 billion.[79]
In May 2020, Vice Media announced they were laying off more than 150 staff due to financial difficulties.[80][81] In June 2020, Vice Media launched an investigation into allegations of subsidiary Refinery29's toxic work environment.[82]
In March 2020, Vice Media organized the Azimuth Music Festival in Saudi Arabia, less than two years after Vice paused all work in Saudi Arabia following the assassination of Jamal Khashoggi. Vice's brand was not used on marketing material, and contractors had to sign non-disclosure agreements regarding Vice's involvement. Vice opened a commercial and creative office in Riyadh in 2022.[83] On 2 October 2020, Vice Media Group appointed Nadja Bellan-White as the global CMO, to be in charge of worldwide branding, communications and promotions. It was also announced that Meera Pattni had been promoted to VP Communications, directly reporting to Bellan-White.[84]
In April 2021, Van Scott, former ABC News communications executive, joined Vice as VP Corporate Communications to lead communications in the US. Scott would report to Laura Misselbrook, Global SVP Communications, based in London.[85]
In April 2021, Vice Media was criticized by Cambodians for photoshopping images of the victims of the Khmer Rouge Genocide. Some victims had smileys photoshopped onto their faces. Vice later admitted to the images being photoshopped and said that "We regret the error and will investigate how this failure of the editorial process occurred."[86]
In March 2021, it was claimed that "VICE Media Group is the world's largest independent youth media company", with offices in 35 cities across the world. Its five key businesses were listed as: Vice.com (digital content); Vice Studios (film and TV production); Vice TV; Vice News; and Virtue (an agency offering creative services).[9] In September 2021, it was reported that Vice raised another investment round following cancelled plans to go public via special purpose acquisition company (SPAC).[87]
Bankruptcy and sale (2023–present)[edit]
In January 2023, Vice began exploring the possibility of selling itself.[88] On 24 February 2023, Dubuc left as CEO as the company faced problems with turning an annual profit and finding a buyer.[89] Bruce Dixon and Hozefa Lokhandwala were appointed co-CEOs on 27 February, a few days after Dubuc's departure.[90] It was announced in April 2023 that Vice Media was restructuring and downsizing its Vice News division due to budget problems. This action included the cancellation of Vice News Tonight and other programs and the layoffs of dozens of employees.[20][21][22]
On 1 May 2023, The New York Times reported that Vice was preparing to file for bankruptcy.[91] According to Deadline, Vice's primary debt-holder, Fortress Investment Group, would likely take control of Vice Media as a result of any Chapter 11 bankruptcy filing.[92]
Two weeks later, on 15 May, Vice Media formally filed for Chapter 11 bankruptcy as part of a possible sale to a consortium of lenders including Fortress Investment Group, which would, alongside Soros Fund Management and Monroe Capital, invest $225 million as a credit bid for nearly all of its assets.[23][93] The following month, Vice accepted the consortium's increased offer of $350 million prior to the bankruptcy auction.[94] The company drew criticism for generous executive compensation packages while employees dealt with layoffs and unpaid company bills.[95] The sale was closed in August 2023.[96] Lokhandwala resigned as co-CEO in December, leaving Bruce Dixon as sole CEO.[1]
On 22 February 2024, CEO Bruce Dixon announced "several hundred" additional layoffs as part of a company restructuring.[24] Dixon also announced that the Vice.com website would no longer publish content, instead partnering with other media companies to distribute its content, and that the company was discussing the sale of Refinery29.[24][25]
The New York Times highlighted that "over the past half-decade, Vice has had near annual layoffs and mounting losses, and has filed for bankruptcy, making it the poster child for the battered digital-media industry" and that while "some observers hoped its new owners [...] would reinvest" in the company, Fortress Investment Group had instead "decided to make sweeping cuts".[97] Chris Thompson of Defector commented that "admirers of Vice's journalism—Vice News and Motherboard, both of which were largely kerploded during Vice's bankruptcy, had made themselves essential with years of excellent reporting—have long daydreamed about a future where its owners and executives stopped trying to turn it into a leprechaun's pot of gold and just allowed it to be a good website. [...] Instead of protecting it as responsible stewards, they treated it more or less the way Paul Cicero treated the Bamboo Lounge in Goodfellas, fattening themselves at its expense until there was nothing left to rob, and then burning it to the ground".[98]
In April 2024, Vice Media sold Refinery29 to Essence magazine-owner Sundial Media Group.[99]