Time Warner in talks for large stake in Vice: reports
11 Jun 2014
Time Warner is reportedly in talks to acquire a large stake in digital media firm, Vice, which was started in Montreal in 1994, Bloomberg reported.
According to reports, Time Warner, which spun off its Time Inc magazine unit on stock markets on Monday, intended to buy half of Vice for about $1 billion, the report said.
With the deal, Vice would get a multi-platform media network that screened primarily over the internet, with access to a traditional television network.
Vice had already made a documentary show for HBO network of Time Warner.
Neither of the companies confirmed they were in talks.
In 2013, 21st Century Fox bought a 5-per cent stake in Vice in 2013 for $70 million, which Time Warner is not interested in buying out. Vice has Rupert Murdoch's son James on its board.
Vice Media has pioneered an unusual reporting style which appeals to a large, young audience. In a stunt last year the company sent basketball player Dennis Rodman, to North Korea.
The media company, now based in Brooklyn NY, operates websites and video channels on YouTube. It also produces documentary films, music videos and books.
As part of the deal, Time Warner might hand over HLN, a sister news network to CNN, Bloomerberg reported, citing people familiar with the matter. While the channels' ratings had been declining, it would give Vice instant availability across over 90 million households.
Vice was poised to double revenue to $1 billion by 2016 and could pursue an initial public offering, co-founder Shane Smith had told Bloomberg Television in an interview in March.
According to Bloomberg Sky News said yesterday, one potential deal structure involved Time Warner injecting its HLN news channel into Vice Media in return for about half of the enlarged company.
Known as AOL Time Warner from 2001 until the demerger of AOL in 2009 (See:Time Warner to spin off AOL as an independent company), Time Warner owns a vast array of properties that, among others, include HBO, Cinemax, Turner Broadcasting (TBS, TNT, Cartoon Network, TruTV, CNN), Nascar Racing, New Line Cinema, Castle Rock Entertainment, The CW Television Network, DC Comics, Time Magazine, Entertainment Weekly, Essance Magazine, Fortune, In Style, People Magazine, and Sports Illustrated.
