By Thaler
A fund tied to billionaire George Soros was among a group of buyers set to gain control of bankrupt Vice Media after bidding $225 million for a company once valued at $5.7 billion, according to a report.
Soros Fund Management and SoftBank-owned Fortress Investment Group, Vice’s main creditors, beat out multiple bidders for the insolvent media company, the New York Times reported Thursday.
Only Fortress’ offer was deemed “qualified” after a bankruptcy judge said the New York-based investment group’s plan for Vice was sustainable for the business, three people familiar with the purchase told the Times.
Since the bid was offered and approved, a bankruptcy auction for the company that was originally scheduled for Thursday will be called off.
The acquisition is expected to be finalized in July, and Fortress, which is owned by hard-charnging dealmaker Wes Edens, has already begun to receive buyer interest in Vice’s individual business units, which includes Refinery29.
On Thursday, Vice’s co-chief executives Hozefa Lokhandwala and Bruce Dixon told staffers in an internal memo that they intended to move forward with Fortress’ bid, the Times reported.
“While we received multiple bids for the company, none of the other bids rose to the level of being deemed a superior bid,” the email said.
Vice declined to comment on the acquisition.
Vice shelled out $400 million for Refinery29 in 2019.
Media watchers were particularly disappointed to see the fashion and beauty blog’s demise.
Brooklyn-based Vice Media, which in 2017 was valued at $5.7 billion, filed for Chapter 11 protection in May to facilitate its sale.
The company said in its court filing that it listed both assets and liabilities in the range of $500 million to $1 billion.
The company reported $600 million in revenue last year – roughly flat compared with 2021, and reportedly $100 million less than its goal.
Media giant GoDigital reportedly also bid on Vice for a sum between $300 million and $350 million.
Group Black offered to put up $400 million for the beleaguered broadcast company in March, but told last month that it was no longer interested.
Soros Fund Management reportedly manages $6.5 billion in assets.
Recently, the 92-year-old Soros, who has supported progressive politicians around the country, handed the reins of his lucrative empire to his 37-year-old son, Alex.
Sources close to Soros and Fortress told earlier this month that neither financial group ever anticipated having to run Vice, and that they were caught flat-footed by the media company’s bankruptcy filing.
“This is the nightmare scenario for them – they never thought it would come to this,” a banking source said.
