Vice just landed a blockbuster valuation of $5.7 billion and $450 million in fresh cash - but Disney didn't put in more money

Read full story

shane smith vice Getty/Dimitrios Kambouris

Vice Media announced on Monday that it had closed a $450 million investment from private equity firm TPG, as the millennial-focused media company seeks to offer more programming content as well as expand into new markets.

TPG's investment values New York City-based Vice at about $5.7 billion, a source familiar with the matter said. That's up from late 2015, when it snagged a valuation of around $4 to $4.5 billion, according to The Wall Street Journal .

It also places it substantially above competitors like BuzzFeed, which was valued at $1.5 billion (pre-money) in late 2016, according to documents from CB Insights .

Vice, home to channels such as Viceland and Motherboard, said it would use the funding to launch "Vice Studios," a platform that will offer scripted programming. It will also use the funds to develop over-the-top and direct-to-consumer services.

"We need to build a much bigger library," Vice CEO Shane Smith told CNBC . "We already do news. We do docs, and we do reality, but we want to do a lot of scripted and feature films."

Vice, which started in 1994 as a Montreal punk magazine, has evolved into a multimedia company offering print, television, and online content as well as a record label and book publishing. Significantly among new media companies, it also has its own cable channel, Viceland (with A&E Networks), although as FT notes , "ratings have often been too low to register."

Walt Disney Co, which owns an 18 percent stake in Vice, did not participate in the funding, The Wall Street Journal reported , citing people familiar with the matter. TPG also has investments in music streaming service Spotify AB and home-sharing company Airbnb.

(Reuters reporting by Pushkala A and Anya George Tharakan in Bengaluru; Editing by Sai Sachin Ravikumar)

NOW WATCH: Here are all the major changes coming to your iPhone

Add Comment()

Comments ()

Sort By:
Be the first one to comment.
We have sent you a verification email. This comment will be published once verification is done.