7/3/2023 0 Comments Vice media spac![]() ![]() ![]() As we’ve learned with both Vice and BuzzFeed, private valuations have been too inflated, especially as competing with digital advertising giants like Google, Meta and Amazon get harder and pressure mounts from investors to turn a profit.Ĭonsolidation and diversification appear to be the only way to survive, but BuzzFeed stock’s slow and steady depreciation is less than encouraging, leaving a cloud of uncertainty over the entire digital media space. The lawsuit alleges the officer who shot the child was reckless and violated his right to be free from. It’s tough out there to be a digital media company. The 11-Year-Old Shot By A Cop After Calling 911 Is Suing Police. Meanwhile, The New York Times paid a cool $550 million to buy up The Athletic, and more recently, G/O Media bought business journalism site Quartz in April. Instead, Vox completed a merger with Group Nine Media in February, and it was reported earlier this month Vice was planning to put itself up for sale. Vice Media Group LLC is an American-Canadian digital media and broadcasting company. Following BuzzFeed’s poor post-debut performance, other media companies seem to have decided that sticking to consolidating and gaining scale privately was the better move.īoth Vox and Vice scrapped their own IPO plans. Many other digital media companies, including Vox Media and Vice Media, were looking to BuzzFeed’s public debut as a sign of whether there was a real appetite among investors for digital media. ![]() And when there’s that much uncertainty, companies tighten their belts and spend less on things like advertising. On top of all that, geopolitical risks caused by a war in Ukraine, sky-high inflation and supply-chain woes have injected a serious amount of uncertainty in the business world. Vice Media Group’s plans to go public through a nearly 3 billion merger with a blank-check firm would leave existing investors with control of the company and remove Vice’s onerous financial. If digital advertising behemoths such as YouTube are having trouble, companies like BuzzFeed are definitely feeling the heat. So tough in fact that even a company like Google’s YouTube reported a serious deceleration in revenue during Q1. However, not only has there been a serious slowdown in SPAC mania, but the macroeconomic environment is tough, to say the least. If there was ever a time to go public through a SPAC, it was 2021, and Peretti jumped on that opportunity to take BuzzFeed public just before the new year. listed SPAC IPOs in 2021 and 248 in 2020, according to financial analytics platform Dealogic. ![]() A SPAC is also known as a “blank-check company” and is used to raise money through an IPO with the goal of either acquiring or merging with another company. Either way, things really aren’t going the way CEO Jonah Peretti thought they would.īuzzFeed emerged as a public company after a merger with special purpose acquisition company - or SPAC - 890 Fifth Ave. By 2019, both the HBO programming and Viceland were canceled.Some may say it’s bad timing, and others may say the market just doesn’t have an appetite for a pure-play digital media company. Vice Media’s SPAC Talks Stall (The Information article behind paywall) Vice Media’s plan to go public by merging with a special purpose acquisition company has stalled as the company struggles to raise additional financing for the deal amid questions about Vice’s valuation, according to people familiar with the situation. The company launched its own video channel named Viceland in 2016. Vice was originally founded by Shane Smith as a magazine in 1994 before pivoting to digital media and HBO in 2013. Distribution of VICE Media Group’s 1,200+ hours of premium TV and 2,000+ hours of unique short form youth programming for partners around the world. Digital media giants hit by the advertising freeze at the start of the pandemic continue to jump at the chance to go public amid a blank-check company craze. It appears the downward spiral is still ongoing." "The company has been in a never-ending cycle of layoffs, pivots and emergency cash infusions for half a decade. Main Conference Speakers at ISS: Shanghai Crystal Zhang Managing Partner, ARC Group Yvonne Fang Vice President, ARC Group Stephine Hu Head of Asia, EF Hutton. That was never going to happen," a source told The New York Post at the time of the attempted SPAC agreement. "Nobody in the industry seriously thought that Vice was ready to go public. Last year, when it tried (and failed) to go public in partnership with 7GC & Co Holdings, it was estimated to be worth around $3 billion. which valued the media conglomerate at roughly $5.7 billion. Vice hired a team of bankers about a year ago in an attempt to work on a sale strategy with its content studio and advertising agency named Virtue.Īt its prime, in 2017, Vice received a $450 million investment from TPG Inc. ![]()
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