Vice Media produces video and editorial content across 13 digital channels, a TV network (VICELAND) and documentary programming such as VICE on HBO. The company says it is building the "largest millennial video library" and plans to launch Vice Studios to create scripted multi-screen programming that complements its existing news and documentary library. Vice intends to expand OTT and possible subscription offerings to better monetize its audience and build direct-to-consumer tech stacks and transactional relationships. The company aims to deliver content in 80 countries by Q1 2018 as part of its growth plan. CEO Shane Smith framed the financing as work toward a potential IPO and acknowledged that revenues need to improve over years, with the new funding intended to accelerate revenue growth. The raise is positioned to fund content expansion and business-model shifts designed to generate stronger, more sustainable revenue. Vice Media started out as a print magazine and has recently found success online, particularly with video. The company is led by CEO Shane Smith, who has set ambitious growth targets, saying Vice could be "10 times" the size of CNN, ESPN, or MTV if it reaches his goals. Vice has agreed to sell a 10 percent stake to A&E Networks for $250 million, which values the company at $2.5 billion. A Vice spokesperson confirmed the deal and valuation after the Financial Times first reported it. Last year Fox invested in Vice at a $1.4 billion valuation, and Time Warner reportedly ended negotiations to buy a stake. The company appears to be engaging legacy media companies as strategic investors while pursuing its online and video growth. Vice began as a print publication but has shifted largely online, with video forming a major part of its recent growth. The company has had success turning online video into larger franchises, including a show on HBO. In 2012 Vice reported $175 million in revenue, with more than 80% coming from the web. Vice has been investing in reporting, including international coverage such as a Beirut bombing report and long-form pieces like an HBO episode on China’s ghost towns. Its editorial style mixes sensationalist, attention-grabbing pieces with more substantial journalism. The company has received backing from ad holding company WPP, merchant bank Raine, and investor Tom Freston, while senior management retains roughly 75% control.

Total raised

$770M

Funding rounds

3

Latest round

Equity

Latest activity

Jun 2017