How did Vice, a highly valued new media darling, go bankrupt?

Vice Media, known for its edgy journalism, will stop publishing content on its website, vice.com, and lay off "several hundred" employees due to cost concerns, according to CEO Bruce Dixon.

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Dixon cited cost-effectiveness as the reason behind discontinuing digital content distribution, indicating a shift towards other distribution channels.

The fast expansion of TikTok, YouTube Shorts, and Instagram Reels has continued to push youth audiences into these video-led platforms, and as the popularity of these platforms has grown, so has youths' preference for short-form and long-form video content."

The move reflects broader financial challenges in the media industry, with major players like The Wall Street Journal and The Washington Post announcing job cuts, while digital platforms like BuzzFeed News have shut down.

Vice Media faced bankruptcy in the US in the previous year and subsequently sold for $350 million to a consortium led by Fortress Investment Group, with participation from Soros Fund Management and Monroe Capital.

The fast expansion of TikTok, YouTube Shorts, and Instagram Reels has continued to push youth audiences into these video-led platforms, and as the popularity of these platforms has grown, so has youths' preference for short-form and long-form video content."

In addition to the layoffs, Vice Media plans to sell Refinery 29, its women-focused publishing division, as part of its strategy to position the company for long-term success, according to Dixon's memo to staff.

Recent Demise of Vice, MTV News, Buzzfeed News signals trouble in youth media landscape.