The Walt Disney Co. took a $157 million write-down on its investment in Vice Media, the millennial-focused media company that is undergoing a restructuring.
Disney invested a total of $400 million in Vice three years ago. It was one of several established media companies — together with 21st Century Fox and WarnerMedia’s HBO — to take a stake in the edgy media company that played up its appeal with male hipsters.
Vice’s fortunes have dramatically changed since those days, when the company boasted a lofty valuation of $4 billion. The Wall Street Journal reported Vice is reducing its workforce by as much as 15% through attrition, as the company contends with flat revenue and declining web traffic.
Chief Executive Nancy Dubuc, who took the helm of the company in May, is attempting to steer the company into potential areas of growth, like making movies and television shows for third parties, and away from the online content where it initially made its mark, the Journal reported.
Disney noted the impairment in a footnote in today’s fourth quarter earnings release.