{"id":333565,"date":"2021-09-02T01:14:43","date_gmt":"2021-09-01T22:14:43","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/vice-media-faces-uncertain-future-after-spac-talks-fall-through\/"},"modified":"2021-09-02T01:14:43","modified_gmt":"2021-09-01T22:14:43","slug":"vice-media-faces-uncertain-future-after-spac-talks-fall-through","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/vice-media-faces-uncertain-future-after-spac-talks-fall-through\/","title":{"rendered":"#Vice Media faces uncertain future after SPAC talks fall through"},"content":{"rendered":"<p>&#8220;<strong>#Vice <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> faces uncertain future after SPAC talks fall through<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>The once bright star of Vice Media could now face a darkening future after talks to go public through a special acquisition company fell through. <\/p>\n<p>The Brooklyn-based media company that was founded by the bombastic exec Shane Smith, has ended talks to go public via a merger with blank-check company 7GC &amp; Co., according to a report from tech <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> site the Information.<\/p>\n<p>Initially, Vice had planned to merge with 7GC in a deal valued at nearly $3 billion including debt, but the company likely didn\u2019t have attractive enough financials to make the deal work, sources familiar with the matter told The Post.<\/p>\n<p>Now, the new plan is to raise money to turn Vice profitable. The company includes female-focused site Refinery29, Vice News and fashion publication i-D. But sources familiar with the matter told The Post that the new strategy is merely a way to stall before figuring out a longer-term plan of what to do next. <\/p>\n<p>\u201cThis [investment] is basically a bridge to figuring out something,\u201d said a source. \u201cThey are in a pretty awful spot.\u201d<\/p>\n<p>Sources buzzed that Vice has only a few options left as SPAC talks have failed, which could include emergency cash bailouts from investors, cutting costs, selling the company or breaking up the business.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-01.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Founder of Vice Media Shane Smith speaks on stage at Google presents YouTube Brandcast event at The Theater at Madison Square Garden \" class=\"wp-image-19317215\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-01.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-01.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-01.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>With a SPAC merger off the table, sources buzzed that Vice\u2019s options include selling the business, further cost cuts, or spinning off assets. <\/figcaption><figcaption><span class=\"credit\">FilmMagic<\/span><\/figcaption><\/figure>\n<p>Neither Vice nor 7GC returned requests for comment from The Post.<\/p>\n<p>Under its new plan to aim for profitability, Vice <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theinformation.com\/articles\/vice-raises-85-million-as-spac-talks-end-smith-yields-control\">has raised $85 million from existing investors<\/a>, the Information reported, adding that as part of the new strategy, Smith has \u201cagreed\u201d to give up voting control.<\/p>\n<p>But sources told The Post that Smith, who will remain chairman of the board, was forced to relinquish voting control, as new investors wouldn\u2019t agree to fund the company without gaining control of it. <\/p>\n<p>Vice\u2019s about-face comes as the once-red-hot SPAC market has begun to cool, in part because of new\u00a0scrutiny from the Securities and Exchange Commission\u00a0on overinflated revenue projections made by some startups that are merging with SPACs.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-05.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A view of Vice Media office  during the coronavirus pandemic\" class=\"wp-image-19317245\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-05.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-05.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-05.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Media watchers said Vice Media\u2019s plans to go public were not realistic as the company faces big financial struggles.<\/figcaption><figcaption><span class=\"credit\">John Nacion\/NurPhoto\/Shutterstoc<\/span><\/figcaption><\/figure>\n<p>Multiple sources with knowledge of Vice\u2019s business said going public was more of a \u201cfantasy\u201d than a reality for the company, which at its height in 2017 had a bloated valuation of $5.7 billion after private equity investor TPG gave the company\u00a0a $450 million injection of capital. But that infusion came at a cost, as Vice agreed to hefty future repayments, according to reports.<\/p>\n<p>Since then, Vice has stumbled in its effort to grow its business, which has been marked by controversy, questionable deals and cost cuts.<\/p>\n<p>\u201cNobody in the industry seriously thought that Vice was ready to go public. That was never going to h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en,\u201d said a person with knowledge of the matter. \u201cThe company has been in a never-ending cycle of layoffs, pivots and emergency cash infusions for half a decade. It appears the downward spiral is still ongoing.\u201d<\/p>\n<p>Just last week, Vice quietly let go of 17 staffers as the company said it would shift its focus from the written word to video storytelling once again.<\/p>\n<p>Founded as Vice Magazine in 1994 by Smith, the company steadily made its push to video and TV. By 2013, Vice had its own weekly news show on HBO. Three years later, it launched a cable channel, Viceland, which slumped in the ratings. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-02.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Shane Smith\" class=\"wp-image-19317274\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-02.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-02.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-02.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Smith had high hopes for turning Vice into a media juggernaut with revenue touching $1 billion by 2015.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Under Smith, Vice had big dreams of becoming a media juggernaut with revenue touching $1 billion by 2015. But a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of critical reports in 2018 on how Vice was built on\u00a0bluffs and smoke and mirrors\u00a0by Smith, who reportedly\u00a0oversaw a toxic work environment\u00a0for female staff, tarnished the company and its founder. <\/p>\n<p>Vice\u2019s fortunes were souring and by 2019, the HBO show and the cable channel were canceled, news leaked out that Vice ponied up $1.87 million to settle a pay disparity class-action lawsuit filed by female employees and Smith was\u00a0replaced as CEO by A&amp;E boss Nancy Dubuc. <\/p>\n<p>Dubuc had been charged with changing the company\u2019s so-called bro culture and she was tasked with integrating the struggling, girl power-focused media giant Refinery29, which the company acquired in 2019 in an all-stock deal. That deal not only lowered the overall valuation of Vice to about $4 billion at the time, but it also baffled media watchers. <\/p>\n<p>\u201cThe cultures are oil and water. Misogyny meets feminism,\u201d a digital executive told The Post at the time. \u201cWhen they merge, there will be very deep cuts on the Refinery side,\u201d predicted the executive. \u201cVice will gut them.\u201d<\/p>\n<p>The source wasn\u2019t too far off, as there have been several rounds of\u00a0reorganization under Dubuc across the company, including the recent\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/variety.com\/2020\/digital\/news\/vice-media-layoffs-155-employees-covid19-1234607610\/\">chopping of 155 jobs<\/a>\u00a0that primarily hit Vice\u2019s digital teams. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-04.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Nancy Dubuc\" class=\"wp-image-19317331\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-04.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-04.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-04.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Vice CEO Nancy Dubuc has been focused on cutting and reorganizing the company, as it shifts to video. <\/figcaption><figcaption><span class=\"credit\">Patrick McMullan via Getty Image<\/span><\/figcaption><\/figure>\n<p>The CEO, who has relentlessly focused on culling the company\u2019s international and digital footprint, said last May that Vice\u2019s digital organization at the time accounted for around 50 percent of its headcount costs, but it only brought in about 21 percent of its revenue. <\/p>\n<p>Vice said earlier this month that Dubuc\u2019s strategy made inroads in digital traffic, but in terms of financials, it\u2019s slow-going. Last year, Vice\u2019s revenue fell about 4 percent to $580 million in 2020 and the company was not profitable, according to reports.<\/p>\n<p>Now that going public through a SPAC is off the table, Vice still has those ominous TPG payouts, as the private equity giant wants to get its money out, the Wall Street Journal reported in May.<\/p>\n<p>\u201cInvestors have been consistently unable to stabilize the company for years. They have no choice but to throw good money after bad,\u201d said a source, before turning to another less probable solution. <\/p>\n<p>\u201cShane [Smith] has a massive [$1 billion] net worth and could have bailed out Vice himself,\u201d the source said. \u201cBut he clearly had no desire to do so. That shows you how much faith the founder has in the business.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2021\/09\/01\/vice-media-faces-uncertain-future-after-spac-talks-fall-through\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Vice Media faces uncertain future after SPAC talks fall through&#8221; The once bright star of Vice Media could now face a darkening future after talks to go public through a special acquisition company fell through. The Brooklyn-based media company that was founded by the bombastic exec Shane Smith, has ended talks to go public via&#8230;<\/p>\n","protected":false},"author":1,"featured_media":333566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/vice-spac-talks-fall-through-06.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[115220,73711,5007,70584,105470,100472],"class_list":["post-333565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-9-1-21","tag-investments","tag-ipo","tag-mergers-acquisitions","tag-shane-smith","tag-vice-media"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/333565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=333565"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/333565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/333566"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=333565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=333565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=333565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}