Ending Soon: Save 50%—over $175—on a subscription with our Cyber Monday DealAct Now

Vice Media's office in Amsterdam. Photo by Shutterstock.

Vice Media Makes Cost-Cutting Push as it Eyes Sale Options

By  |  June 2, 2022 12:02 PM PDT
Photo: Vice Media's office in Amsterdam. Photo by Shutterstock.

Vice Media is looking to cut costs and had brought in consultancy AlixPartners in recent weeks to help review its business as it explores a sale of its studio arm or the entire company, according to people familiar with the situation.

The New York-based media company is slowing down hiring and cutting other costs to attain positive cash flow and generate $25 million in earnings before interest, taxes, depreciation and amortization this year, the people said. Vice is projecting revenue to rise to over $700 million in 2022, up from around $680 million last year, the people said.  Its studio arm, which is one of the assets it is potentially looking to offload, makes up nearly one-third of that revenue.

Vice’s cost cutting comes as all media companies are seeing a decline in advertising revenue amidst market uncertainty. Last week, Snap warned that its second-quarter revenue and profits would fall short of its earlier projections due to faster deterioration in the economy than it had anticipated.

But Vice, which operates a news division, a digital business that includes Refinery 29, and the Virtue ad agency,  has unique challenges in that it has been under pressure from investors, including private equity company TPG, to repay $1.1 billion in debt it owes. Last month, Vice hired bankers from LionTree and PJT Partners to explore a sale of its studio business, The Information first reported. Since then, Vice CEO Nancy Dubuc has told executives the media company received interest in the division, according to one of the people.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The Briefing apple crypto
Musk Is Biting Off More Than He Can Chew By Picking a Fight With Apple
Photo courtesy of Getty
Elon Musk appears to be taking a page out of Donald Trump’s presidential playbook: If in doubt, pick a fight—with everyone. Having alienated a large group of Twitter’s advertisers, while risking Twitter's relations with regulators and simultaneously mocking the news media, Musk today started a public brawl with Apple, even threatening to go to war over its App Store fees. Musk may...
Latest Briefs
 
Snap Tells Employees to Work In Person Four Days a Week (Bloomberg)
AWS, Margaritaville Among Top Alameda Creditors
Apple Cut Ad Spending on Twitter and Threatened App Store Expulsion, Musk Says
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Art by Clark Miller
The Big Read
‘I’m Licking My Chops. I Know It’s Going Down’: The Pissed-Off Crypto Traders Who Predicted—and Profited From—the FTX Implosion
Ishan Bhaidani had been patient for over a month, waiting for blood in the water. Now was his moment.
Sequoia Capital's Alfred Lin. Photo by Getty Images
FTX Collapse Tarnishes Sequoia’s Reputation, Prompts Apology
Sequoia Capital’s Alfred Lin made a name for himself as a loyal confidant to the tenacious, often-doubted founders of companies like DoorDash and Airbnb, a commitment that helped catapult him to the No.
Art by Clark Miller.
Gift Hunting culture
The Information’s Top Tech-Adjacent Gifts for 2022
After the roller-coaster ride of the past month, everyone needs a little retail therapy. So, in honor of Black Friday and the upcoming holiday season, we’ve put together our annual gift guide, asking The Information’s staffers to share their favorite tech and tech-adjacent purchases of the last year.
Bob Chapek via Bloomberg
Opinion entertainment media/telecom
It’s Not Just Disney
Parqor is part of The Information’s newsletter network. To receive it in your inbox every Monday, Wednesday and Friday, sign up here .
Alfred Lin. Photo by Getty Images.
Dealmaker venture capital
The Star Sequoia Investor Behind FTX’s Collapse
Last week, Sequoia Capital partner Doug Leone compared FTX’s blowup to childbirth. “Like having a child, you forget the pain of having that child three months later, a year later,” he said on stage at a conference in Europe.
Animation by Clark Miller
Social Studies
By Day, Elon Musk Rules Twitter—by Night, He’s Invading Our Dreams
Elon Musk made his first speaking appearance in Aaron Neyer’s dream life one night in mid-November.