Vice Media Group, the parent company of media websites Vice and Motherboard, is on the verge of filing for bankruptcy, The New York Times reported. The Times cited two people familiar with the matter and added that the filing could come in the coming weeks.

According to the report, Vice has been looking for a buyer to purchase the company over the last few months to avoid declaring bankruptcy. Five companies are reportedly interested in purchasing Vice in the event of its bankruptcy. However, the chances of Vice being acquired by another company are slim, according to people familiar with the matter.

In case, the company does file for bankruptcy, debt-holder Fortress Investment Group could end up controlling the company. The report also noted that other investors in Vice, including Disney and Fox, would not get investment returns, according to a person familiar.

''Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning. The company, its board and stakeholders continue to be focused on finding the best path for the company'', Vice said in a statement to the Times on Monday.

The company is expected to continue operating normally in the event of any bankruptcy filing.

Vice was once reportedly valued at $5.7 billion in 2017 after private equity firm TBG made a $450 million investment into the company but then dropped in 2021 to about $3 billion. The Times reported that Vice is now valued at a ''fraction'' of what it was in 2017 as the company has looked for a potential buyer. 

The company was founded by Shane Smith, Gavin McInnes, and Suroosh Alvi in Montreal in 1994, that started publishing Vice magazine before establishing a large online presence. Over the years, it blossomed into a global media company with a movie studio, an ad agency, a show on HBO and bureaus in far-flung world capitals.

The news comes just days after BuzzFeed News announced that it was shutting its news division as part of cost-saving cuts. The company cited challenges including recession in the tech sector and the struggling stock market, with CEO Jonah Peretti admitting he was partly at fault for the closure.

Source: NDTV