Multiple sources with knowledge of Vice’s business said going public was more of a “fantasy” 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 a $450 million injection of capital. Media watchers said Vice Media’s plans to go public were not realistic as the company faces big financial struggles. Vice’s about-face comes as the once-red-hot SPAC market has begun to cool, in part because of new scrutiny from the Securities and Exchange Commission on overinflated revenue projections made by some startups that are merging with SPACs. Under its new plan to aim for profitability, Vice has raised $85 million from existing investors, the Information reported, adding that as part of the new strategy, Smith has “agreed” to give up voting control.īut sources told The Post that Smith, who will remain chairman of the board, was forced to relinquish voting control, as new investors wouldn’t agree to fund the company without gaining control of it. Neither Vice nor 7GC returned requests for comment from The Post. With a SPAC merger off the table, sources buzzed that Vice’s options include selling the business, further cost cuts, or spinning off assets. 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. “This is basically a bridge to figuring out something,” said a source. 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. The company includes female-focused site Refinery29, Vice News and fashion publication i-D. Now, the new plan is to raise money to turn Vice profitable. Initially, Vice had planned to merge with 7GC in a deal valued at nearly $3 billion including debt, but the company likely didn’t have attractive enough financials to make the deal work, sources familiar with the matter told The Post. 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 & Co., according to a report from tech news site the Information. 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. Soros, Fortress in a vise to find new buyer for bankrupt Vice Soros Fund, Fortress scoop up bankrupt Vice for $225M Vice roasted for paying execs up to $900K before filing for bankruptcy George Soros-tied fund, Fortress buy bankrupt Vice Media for $350M
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