There’s a proposed merger between Vice Media and 7GC & Co Holdings, with the investment company reportedly values the media outlet at almost $3 billion, The Wall Street Journal reports.
7GC & Co Holdings value of Vice falls short of their expectations considering the media outlet garnered a $5.7 billion valuation when it secured a $450 million investment from private equity firm TPG in 2017.
The structure of this merger will be as a special acquisition company (SPAC). For those that don’t know, a SPAC deal is when a company with no commercial operations goes public, mainly to raise money for an acquisition or merger.
Under the new agreement, the current owners will control 75 percent of Vice while 7GC & Co Holdings would handle the rest.
Like many media outlets, Vice has dealt with issues that the coronavirus pandemic has brought. At the start of the pandemic last year, the Journal reported that Vice was planning on laying off 300 people. However, it’s a report that Vice has disputed.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
