Vapeboss – Vice Media Group, the company behind the media sites Vice and Motherboard, has filed for bankruptcy in the United States and will be sold to a group of its lenders. The company was once valued at IDR 84 trillion (US$5.7 billion) and can now be acquired for approximately IDR 3.3 trillion (US$225 million).

During the bankruptcy proceedings, Vice will continue to operate as normally as possible. The youth-focused digital media and broadcasting company also hopes to become more financially healthy and stronger within the next two to three months.

In 1994, Vice was launched as an alternative magazine called Voice of Montreal by Shane Smith, Gavin McInnes, and Suroosh Alvi, and currently operates in over 30 countries. Its quirky, youth-focused content spans print media, events, music, online platforms, TV, and feature films.

Vice Media Group's investors include Fortress Investment Group, Monroe Capital, and Soros Fund Management - a firm founded by fund manager and billionaire George Soros. The lenders have approved IDR 296 billion (US$20 million) in funding for Vice Media to continue operating through the bankruptcy process.

During this process, other companies may submit "higher or better" offers for the media company. If these offers are unsuccessful, Vice Media's lenders will acquire the publishing company for IDR 3.3 trillion.

Vice Media Group has faced revenue difficulties for several years and has struggled to achieve profitability. Vice's plan to go public through a merger also failed. Last month, Vice announced layoffs after its flagship TV program was shut down.

BuzzFeed, another pioneering online platform, also recently announced the closure of its news division and laid off 15% of its workforce amidst serious financial problems and declining advertising revenue.

Source: MSN