Vice CEO’s departure signals fallen hopes for digital media

WHEN Vice Media named Nancy Dubuc as its new chief executive officer in 2018, her contract hinted at one of her missions. Sell the company – at the time a darling of the media industry – and she could cash in on a big stock grant, according to a copy of the contract obtained by The New York Times.

So far, that hasn’t come to pass. On Friday (Feb 24), Dubuc said she was leaving Vice, which investors expect is worth far less than before she took over.

Just a month ago, Dubuc announced publicly that the company was for sale. No deal has materialized yet.

Her unexpected departure – her last day is Friday – and Vice’s struggles in recent years highlight the fallen fortunes of a group of digital media companies that not long ago was talked about as the future of the industry.

Vice, which was hailed as a new-media colossus at the height of its eye-popping valuation of US$5.7 billion, has been written down by some of its initial backers, including The Walt Disney Co. The company has debts piling up, and it is now expected to sell for far less than that sky-high valuation.

A person with knowledge of the sales process said that bids to acquire Vice were due soon, and that the company would likely sell within the next 60 days.

Other top digital media companies, such as BuzzFeed and Vox Media, have had similar setbacks. Investor enthusiasm has waned as those companies have struggled to live up to some of their lofty ambitions, digital advertising shifted increasingly to tech giants like Alphabet and Meta, and legacy media companies began focusing on catching up to streaming giants like Netflix.

In a note to the staff Friday, Dubuc said that although Vice faced business headwinds, the company had became less reliant on advertising during her tenure and had made strides to become more financially independent.

She also nodded to other improvements under her leadership, including creating a more inclusive workplace environment. Dubuc joined Vice shortly after investigations into the company’s culture, including by the Times, revealed incidents of sexual harassment against women who worked for the company.

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Reached by phone Friday, she declined to comment further.

In a statement, Vice’s board said that Dubuc joined the company during a critical period and “positioned the company for long-term success,” adding that Vice would soon announce new leadership for the company. NYT