Vice Media, a US-based media group backed by corporates Walt Disney, 21st Century Fox, A&E Networks and WPP, has received $450m in equity financing from private equity group TPG, CNBC reported yesterday.
TPG provided the cash at a $5.7bn valuation, Vice co-founder and CEO Shane Smith told CNBC, a substantial increase from the $4bn valuation at which Walt Disney Company provided Vice’s last funding in late 2015.
Founded in 1994 as a local zine, Vice operates a media operation that now incorporates not only a monthly magazine but various online offerings, books, documentary films and a cable television channel.
Smith said the TPG funding will enable Vice to launch a dedicated video content production arm called Vice Studios and to expand globally. It is set to enter India later this year through a partnership with media firm Times Group.
The company also hopes to expand some of its specialised brands, such as millennial-focused music news and content platform Noisey.
“This will allow us to: build up the largest millennial video library in the world – enabling Vice to widen our offering to include; news, food, music, fashion, art, travel, gaming, lifestyle, scripted and feature films,” Smith said.
The TPG deal brought the total amount of funding raised by Vice to more than $1.35bn. Marketing firm WPP invested an undisclosed amount in the company in 2011, before entertainment group 21st Century Fox invested $70m in 2013 at a $1.4bn valuation.
A&E Networks, a broadcasting joint venture between Walt Disney and media group Hearst, paid $250m for a 10% stake the following year, just before growth equity firm Technology Crossover Ventures invested a further $250m.
Walt Disney subsequently supplied $400m for Vice over two tranches in November and December 2015, taking a 10% share in the company.