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Will Vice Media IPO in 2017? Everything Investors Need To Know
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Vice Media, which started as a local Canadian magazine in the early 90s, has steadily grown into a journalism powerhouse and has almost single- handedly kept the withering art of investigative reporting alive. Now, the millennial-favorite news outlet is on the cusp of becoming a global media giant as it considers an IPO in 2017.
Vice specializes in grungy, street-level stories that cover everything from American politics to drug culture in Ukraine, and its often-boisterous CEO Shane Smith has even bigger plans for the future of his company.
In a recent interview with Variety, Smith hinted at the possibility of an IPO in 2017, saying that the company was “talking to some banks” and “getting ready.” While no specific plans have been announced yet, Smith did say that Vice executives will present the case for a market debut at a board meeting in January.
It’s clear that there’s potential for a Vice Media IPO in early 2017, which means that investors might soon have another stock to consider in the fast-changing media industry. Here’s everything you need to know before Vice debuts.
Company History
Vice Media was founded in 1994 by Smith, as well as Gavin McInnes and Suroosh Alvi. The company started as a local magazine, Voice of Montreal, and received funding by the Canadian government to cover topics like music, pop culture, and drugs.
In 1996, the founder changed the name of the publication to VICE, and by 1999, they realized that the company had outgrown Quebec and moved their headquarters to New York.
The Vice Media that we know today really started taking shape in 2006 when VICE launched its original video content. Over the next few years, the company aggressively expanded its video operations and launched several new platforms, including Motherboard, which focuses on technology; Noisey, a music-focused outlet; and Vice Sports, which connected Vice’s unique style with sports fans.
The next big step for Vice was its partnership with Bill Maher, who went on to executive produce the company’s new 30-minute news program on HBO. This show finally introduced Vice’s culture-focused reporting to a mass audience. In 2014, Vice launched VICE News, which immediately gained traction thanks to its groundbreaking, on-the-ground coverage of the conflicts in Ukraine and Venezuela.
Vice and its minority owner A&E Networks announced plans to launch its own cable network, Viceland, in November 2015. The channel debuted in February 2016 and features Vice-produced programs, including shows focused on food, music, and current events.
Investors and Valuation
Over the years, Vice has garnered several notable investments from some of the media world’s biggest players. The first major bit of funding came from 21st Century Fox (FOXA - Free Report) in 2013. Media giant Rupert Murdoch’s company invested $70 million for a 5% stake at that time.
About a year later, A&E Networks, which is co-owned by Hearst Communications and The Walt Disney Company (DIS - Free Report) , paid $250 million for a 10% stake in the company. This raised Vice Media’s valuation to $2.5 billion.
In 2015, Disney decided to get even more involved in Vice with a pair of investments that totaled $400 million and a 10% stake in the company, raising Vice’s valuation to $4.5 billion.
Looking Ahead
Now that the likes of Disney and Rupert Murdoch have stakes in Vice, the pressure is on for the company to provide value for these shareholders. In fact, in the same interview that Smith hinted at an IPO, he explained that it was these big investors that directed him to take a look at Vice’s books in the first place.
“It’s ironic our partners forced us to go through that process and test the market, because when we went through that process, our actual growth metrics were higher [than had been anticipated],” Smith told Variety.
Smith also noted that he sees Vice taking on a much larger scope eventually. In March 2016, Vice Media purchased a controlling stake in UK-based TV and film producer Pule Films, and Smith sees more acquisitions like this in the future. In his Variety interview, he noted that that he wants Vice to “buy some tech companies, buy some TV companies, distressed media outlets, of which there are a lot.”
Whether Vice decides to IPO, expand through mergers and acquisitions, or perhaps a bit of both, it’s clear that big things are coming for the company in 2017. This is, without a doubt, a company that investors need to keep an eye on as we head into the New Year.
For more on the sluggish 2016 IPO market and some idea s on what’s coming next in the world of IPOs, check out this exclusive interview from the Zacks Friday Finish Line team and Kathleen Smith, the founder of Renaissance Capital:
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Will Vice Media IPO in 2017? Everything Investors Need To Know
Vice Media, which started as a local Canadian magazine in the early 90s, has steadily grown into a journalism powerhouse and has almost single- handedly kept the withering art of investigative reporting alive. Now, the millennial-favorite news outlet is on the cusp of becoming a global media giant as it considers an IPO in 2017.
Vice specializes in grungy, street-level stories that cover everything from American politics to drug culture in Ukraine, and its often-boisterous CEO Shane Smith has even bigger plans for the future of his company.
In a recent interview with Variety, Smith hinted at the possibility of an IPO in 2017, saying that the company was “talking to some banks” and “getting ready.” While no specific plans have been announced yet, Smith did say that Vice executives will present the case for a market debut at a board meeting in January.
It’s clear that there’s potential for a Vice Media IPO in early 2017, which means that investors might soon have another stock to consider in the fast-changing media industry. Here’s everything you need to know before Vice debuts.
Company History
Vice Media was founded in 1994 by Smith, as well as Gavin McInnes and Suroosh Alvi. The company started as a local magazine, Voice of Montreal, and received funding by the Canadian government to cover topics like music, pop culture, and drugs.
In 1996, the founder changed the name of the publication to VICE, and by 1999, they realized that the company had outgrown Quebec and moved their headquarters to New York.
The Vice Media that we know today really started taking shape in 2006 when VICE launched its original video content. Over the next few years, the company aggressively expanded its video operations and launched several new platforms, including Motherboard, which focuses on technology; Noisey, a music-focused outlet; and Vice Sports, which connected Vice’s unique style with sports fans.
The next big step for Vice was its partnership with Bill Maher, who went on to executive produce the company’s new 30-minute news program on HBO. This show finally introduced Vice’s culture-focused reporting to a mass audience. In 2014, Vice launched VICE News, which immediately gained traction thanks to its groundbreaking, on-the-ground coverage of the conflicts in Ukraine and Venezuela.
Vice and its minority owner A&E Networks announced plans to launch its own cable network, Viceland, in November 2015. The channel debuted in February 2016 and features Vice-produced programs, including shows focused on food, music, and current events.
Investors and Valuation
Over the years, Vice has garnered several notable investments from some of the media world’s biggest players. The first major bit of funding came from 21st Century Fox (FOXA - Free Report) in 2013. Media giant Rupert Murdoch’s company invested $70 million for a 5% stake at that time.
About a year later, A&E Networks, which is co-owned by Hearst Communications and The Walt Disney Company (DIS - Free Report) , paid $250 million for a 10% stake in the company. This raised Vice Media’s valuation to $2.5 billion.
In 2015, Disney decided to get even more involved in Vice with a pair of investments that totaled $400 million and a 10% stake in the company, raising Vice’s valuation to $4.5 billion.
Looking Ahead
Now that the likes of Disney and Rupert Murdoch have stakes in Vice, the pressure is on for the company to provide value for these shareholders. In fact, in the same interview that Smith hinted at an IPO, he explained that it was these big investors that directed him to take a look at Vice’s books in the first place.
“It’s ironic our partners forced us to go through that process and test the market, because when we went through that process, our actual growth metrics were higher [than had been anticipated],” Smith told Variety.
Smith also noted that he sees Vice taking on a much larger scope eventually. In March 2016, Vice Media purchased a controlling stake in UK-based TV and film producer Pule Films, and Smith sees more acquisitions like this in the future. In his Variety interview, he noted that that he wants Vice to “buy some tech companies, buy some TV companies, distressed media outlets, of which there are a lot.”
Whether Vice decides to IPO, expand through mergers and acquisitions, or perhaps a bit of both, it’s clear that big things are coming for the company in 2017. This is, without a doubt, a company that investors need to keep an eye on as we head into the New Year.
For more on the sluggish 2016 IPO market and some idea s on what’s coming next in the world of IPOs, check out this exclusive interview from the Zacks Friday Finish Line team and Kathleen Smith, the founder of Renaissance Capital:
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>