- Digital native outlets like Buzzfeed and Vice Media were very popular in the 2010s, but have faced significant challenges in recent years.
- Both companies have suffered financial difficulties and have had to lay off employees.
- Tech giants like Google and Meta Platforms have sucked up global ad spend and been a major cause of the decline.
Vice Media Group, once considered one of the most disruptive and valued media outlets in the world, filed for bankruptcy on Monday, May 15, after several years of financial difficulties.
The goal is for a group of funds that lent money to Vice to take over, including industry giants such as Fortress Investment, Soros Fund Management and Monroe Capital.
Vice was, along with Buzzfeed, one of the pioneering digital media due to its 100% web approach and without the vices of companies that reached the Internet from their “paper” platforms.
So much so that it came to be valued at $5.7 billion.
However, in recent years, the number of visits has been falling, not being able to adapt to changes in the forms of monetization and appealed for the dismissal of workers.
The group that will take over the company will inject a $225 million loan for most of Vice Media’s assets, Vice said Monday.
Vice’s bankruptcy adds to what happened in another medium considered disruptive, Buzzfeed, which in April closed its news division and announced massive layoffs.
Vice was launched in Canada and from there it expanded throughout the world with content focused on young people and a prominent presence on social networks.
But financial problems came when tech giants, notably Google and Meta Platforms, sucked up global ad spend and Vice had no back to hang on.
To facilitate its sale, Vice filed for the so-called Chapter 11publish this monday CNBC.
Vice and the fall of digital native media
Digital native media companies like Buzzfeed and Vice Media were in the 2010s some of the most recognizable names in the online publishing industry.
However, despite their initial success, they have faced significant challenges in recent years, raising questions about their future.
So-called “digital natives” are media companies that emerged in the internet age, often with a focus on producing content that targeted younger audiences.
In most cases, these companies leveraged social media and other digital channels to distribute their content and build an audience.
Buzzfeed, founded in 2006, became the epitome of digital native media, with its viral quizzes and lists.
Vice Media was actually born in 1994 as a Canadian magazine, but it expanded into the digital world and became known for its cutting-edge, youth-oriented content.
Buzzfeed launched news and investigative journalism divisions, while Vice Media expanded into TV production and international markets.
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