How a Punk Zine Became a Billion-Dollar Media Giant—And Then Vanished

Vice Media began in 1994 as a government-funded punk magazine in Montreal called Voice of Montreal, founded by Suroosh Alvi, Shane Smith, and Gavin McInnes. Rebranded as 'Vice' in 1996, it embraced a rebellious, gonzo journalism style that resonated with disaffected youth. Relocating to New York in 1999, Vice pivoted to digital video in the mid-2000s through platforms like VBS.tv, partnering with MTV and later launching an Emmy-winning HBO series. This era marked its golden age, culminating in a $5.7 billion valuation in 2017 after a major investment from TPG Capital. However, beneath its edgy exterior, systemic issues festered. In 2017, reports exposed a toxic workplace culture rife with sexual harassment, leading to multiple settlements and public backlash. Employees described a 'bro culture' enabled by a so-called 'non-traditional workplace agreement' that discouraged complaints. Despite leadership changes and reform efforts, the damage to Vice’s reputation was severe. Financial instability followed: despite high-profile partnerships and global reach, Vice failed to build a sustainable business model, missing revenue targets by $100 million in 2022. The digital ad market slowed, and social media platforms eroded its traffic. Key partnerships ended, including HBO’s cancellation of Vice News Tonight in 2019. Successive layoffs in 2019, 2020, and 2023 gutted its workforce. In May 2023, Vice filed for Chapter 11 bankruptcy and was acquired for $350 million—less than 5% of its peak value—by a consortium led by Fortress Investment Group. By February 2024, Vice.com ceased publishing new content, shifting to a studio model focused on third-party distribution and social media. The collapse reflects broader challenges in digital media, where rapid growth often outpaces financial discipline and cultural accountability. Yet Vice’s legacy endures: it revolutionized digital journalism with immersive, first-person storytelling, pioneered online video content for young audiences, and gave voice to underrepresented global stories. Its rise and fall underscores a critical lesson: innovation without ethical leadership and economic sustainability is ultimately unsustainable. The remnants of Vice continue through new partnerships and a revived print edition, but the era of its dominance as a youth media powerhouse has definitively ended.

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