Vice Media files for bankruptcy ahead of planned sale

Launched in 1994 as a punk magazine called Voice of Montreal by Shane Smith, Gavin McInnes and Suroosh Alvi, Vice currently operates in more than 30 countries. (AFP/File)
Launched in 1994 as a punk magazine called Voice of Montreal by Shane Smith, Gavin McInnes and Suroosh Alvi, Vice currently operates in more than 30 countries. (AFP/File)
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Updated 15 May 2023

Vice Media files for bankruptcy ahead of planned sale

Vice Media files for bankruptcy ahead of planned sale
  • Lenders’ consortium could gain control in $225m takeover
  • Filing meant to facilitate sale, said reports earlier this month

LONDON: American-Canadian digital media and broadcasting company Vice Media reportedly filed for bankruptcy on Monday ahead of a planned sale to a group of lenders.

The company, whose assets include Vice News, Motherboard, Refinery29, i-D and Vice TV, is expected to be sold to a lender consortium, which includes Fortress Investment Group, Soros Fund Management and Monroe Capital.

The decision to file for voluntary Chapter 11 bankruptcy in the US is seen as a way to cap losses and to facilitate the approximately $225 million takeover, which will provide the capital “in the form of a credit bid for substantially all of the company’s assets” and also assume “significant liabilities” at closing.

Under a credit bid, creditors can swap their secured debt, rather than pay cash, for the company’s assets.

Vice said in a statement that it “expects to emerge as a financially healthy and stronger company” when the process concludes, according to reports.

“Vice serves a huge global audience with a unique brand of news, entertainment and lifestyle content,” said Bruce Dixon and Hozefa Lokhandwala, Vice’s co-CEOs, in the statement.

“This accelerated court-supervised sale process will strengthen the company and position Vice for long-term growth, thereby safeguarding the kind of authentic journalism and content creation that makes Vice such a trusted brand for young people and such a valued partner to brands, agencies and platforms.”

The youth-focused digital publisher said it would continue to operate during bankruptcy proceedings, and expects to complete the sale process within two to three months.

In the court filing the group added that the “company’s international entities, and the Vice TV joint venture with A&E, are not part of the Chapter 11 filing.” And that “Vice’s multi-platform media brands, including Vice, Vice News, Vice TV, Vice Studios, Pulse Films, Virtue, Refinery29 and i-D, will continue to produce and deliver award-winning content across platforms.”

Rumors of the bankruptcy and sale emerged earlier this month, following a major internal restructuring and the cancellation of the group’s flagship program, Vice News Tonight.

The news comes amid a challenging period for several technology and media companies, as they resort to downsizing in recent months due to a turbulent economy and weak advertising market.

In April, BuzzFeed announced it would shut down its news division, while other media companies, including CNN, Vox, and The Washington Post, announced layoffs and closures.

Launched in 1994 as a punk magazine called Voice of Montreal by Shane Smith, Gavin McInnes and Suroosh Alvi, Vice currently operates in more than 30 countries.

Throughout its history, the platform has been lauded as a global success for its ability to produce edgy, youth-focused content across print, events, music, online, TV and feature films. This content has drawn younger audiences to the news and media world.

In 2017, the next-generation media and entertainment platform that once “threatened to supplant legacy media companies” reached a peak value of $5.7 billion.

Vice has had a presence in the Middle East since 2017, when it established a regional office in Dubai and recently announced the opening of its new headquarters and creative agency in Riyadh, from which it is expected to produce content and further expand its footprint in the region.


China deletes 1.4 million social media posts in crack down on ‘self-media’ accounts

China deletes 1.4 million social media posts in crack down on ‘self-media’ accounts
Updated 27 May 2023

China deletes 1.4 million social media posts in crack down on ‘self-media’ accounts

China deletes 1.4 million social media posts in crack down on ‘self-media’ accounts
  • About 67,000 social media accounts closed and hundreds of thousands of posts between March 10 and May 22 deleted
  • Beijing frequently arrests citizens and censors accounts for publishing or sharing factual information considered sensitive or critical

BEIJING: China’s cyberspace regulator said 1.4 million social media posts have been deleted following a two-month probe into alleged misinformation, illegal profiteering, and impersonation of state officials, among other “pronounced problems.”
The Cyberspace Administration of China (CAC) said in a statement on Friday it had closed 67,000 social media accounts and deleted hundreds of thousands of posts between March 10 and May 22 as part of a broader “rectification” campaign.
Since 2021, China has targeted billions of social media accounts in a bid to “clean” its cyberspace and make it easier for authorities to control.
The latest crackdown targeted accounts on popular Chinese social media apps including WeChat, Douyin, and Weibo that fall under the category of “self media,” a term that broadly refers to accounts that publish news and information but are not government-run or state-approved.
Beijing frequently arrests citizens and censors accounts for publishing or sharing factual information considered sensitive or critical of the Communist Party, the government or the military, especially when such information goes viral.
Of the 67,000 accounts that were permanently closed, almost 8,000 were taken down for “spreading fake news, rumors, and harmful information,” according to CAC.
Around 930,000 other accounts received less severe punishments, from being removed of all followers to the suspension or cancelation of profit-making privileges.
In a separate campaign, the regulator recently closed over 100,000 accounts that allegedly misrepresented news anchors and media agencies to counter the rise of online fake news coverage aided by AI technologies.
The CAC on Friday said its latest campaign had targeted almost 13,000 counterfeit military accounts, with names such as “Chinese Red Army Command,” “Chinese Anti-terrorist Force” and “Strategic Missile Force.”
Some 25,000 other accounts were targeted for impersonating public institutions, such as disease and prevention control centers and state-run research institutes.
Almost 187,000 were punished for impersonating news media businesses, while over 430,000 allegedly offered professional advice or educational services without having relevant professional qualifications.
Around 45,000 accounts were closed for “hyping hot issues, clout-chasing and illegal monetization.”
The regulator said it had “actively coordinated with public security, market supervision and other departments, to deliver a heavy blow and rectify illegal ‘self-media’.”
“At the same time, (we) also call on the majority of netizens to actively participate in monitoring and reporting (illegal ‘self-media’), provide clues ... and jointly maintain a clean cyberspace,” it added.


Starzplay and NMPRO unveil original film ‘Big Lie’ at red-carpet premiere event

Starzplay and NMPRO unveil original film ‘Big Lie’ at red-carpet premiere event
Updated 26 May 2023

Starzplay and NMPRO unveil original film ‘Big Lie’ at red-carpet premiere event

Starzplay and NMPRO unveil original film ‘Big Lie’ at red-carpet premiere event
  • The movie explores the dark side of social media, particularly the influential and dangerous role it can play in people’s lives
  • “Big Lie” will be released on Starzplay soon, said Tony Saab, senior vice president of content and strategic partnerships at the platform

DUBAI: Streaming platform Starzplay unveiled its original film “Big Lie” at a premiere event hosted in collaboration with Middle Eastern production company NMPRO at the Grand Cinemas ABC Verdun in Beirut, Lebanon.
The movie explores the dark side of social media, particularly the influential and dangerous role it can play in people’s lives.
The film is the result of a “long-term partnership built on shared values, a unified vision, and a mutual commitment to delivering exceptional content” between the two companies, said Nadim Mehanna, producer and director of “Big Lie” and founder of NMPRO.
“Big Lie” will be released on Starzplay soon, said Tony Saab, senior vice president of content and strategic partnerships at the platform.
He added: “As part of our commitment to delivering surprises every month, our content acquisition and production strategy focuses on frequently releasing Starzplay originals in collaboration with esteemed production houses across the region.”
The premiere was attended by stars such as Heba Nour, Sandy Farah, Fouad Yammine, Yaaqoub Chahine, Laura Khabbaz, and Sharbel Zyadeh, as well as executives from Starzplay and NMPRO.


Twitter likely to quit EU code against disinformation, EU official says

Twitter likely to quit EU code against disinformation, EU official says
Updated 26 May 2023

Twitter likely to quit EU code against disinformation, EU official says

Twitter likely to quit EU code against disinformation, EU official says
  • Code sets a range of self-regulatory commitments, measures to counter online disinformation
  • Company will not quit Europe, official said

BRUSSELS: Twitter is likely to pull out from a voluntary EU code of practice to tackle disinformation, but the move does not mean it will quit Europe, an EU official said on Thursday.
The European Commission beefed up the code last year, requiring companies to submit regular progress reports with data on how much advertising revenue they had averted from disinformation actors.
New obligations include providing information on the number or value of political advertisements accepted or rejected and instances of manipulative behaviors detected.
Twitter has given signs that it will leave the code, the EU official said, adding that it does not make a big difference as the company has not been putting in a lot of effort recently.
“It just means that they won’t attend meetings and not issue reports. They would still have legal obligations,” the official said, referring to landmark tech rules adopted recently to which the code of practice is linked.
“They are not pulling out of Europe,” the official said.
Twitter did not respond immediately to a request for comment.
Violations of the tech rules can cost companies fines as much as 6 percent of their global turnover.
Companies signed up to the code include Alphabet’s Google, Meta Platforms, Microsoft and TikTok.


Virtuzone launches world’s first AI tax assistant in UAE

Virtuzone launches world’s first AI tax assistant in UAE
Updated 26 May 2023

Virtuzone launches world’s first AI tax assistant in UAE

Virtuzone launches world’s first AI tax assistant in UAE
  • TaxGPT helps businesses navigate changing corporate tax environment 

LONDON: The world’s first AI-powered corporate tax assistant has been launched in the UAE by Dubai-based formation specialists and corporate services provider Virtuzone.

Powered by the GPT-4 AI model from US AI research lab OpenAI, TaxGPT is designed to help businesses in the UAE navigate corporate tax law.

“Innovation is at the heart of everything we do at Virtuzone,” said CEO George Hojeige.

“We’re committed to enhancing the entrepreneurial experience by integrating next-gen technologies like AI into our tools and processes, ultimately elevating the state of entrepreneurship in the country.”

Trained to provide answers based on information from the UAE’s Ministry of Finance and the Federal Tax Authority, the AI-powered tax assistant learns and adapts to legislative changes, aiming to keep businesses up to date with corporate tax regulations.

By leveraging AI technology, Virtuzone aims to equip entrepreneurs with the knowledge to transition into the UAE’s new tax regime, set to launch on June 1.

“TaxGPT is just one of the tools we have created to make it easier for entrepreneurs and businesses to navigate the new tax law and the country’s dynamic business landscape,” said John Casey, general manager at Virtuzone accounting and tax.

“We understand that the new tax regime can seem like uncharted territory for many businesses, and that is why we are here to provide expert guidance and assistance.”

TaxGPT follows Virtuzone’s launch of SWYFT Plan, an AI-driven business plan builder compliant with free zone authorities and banks in the UAE.

The company has also introduced a number of technology-led tax and accounting assistant initiatives, including corporate tax and business setup cost calculators, as well as a metaverse HQ.

Virtuzone is also partnered with cryptocurrency exchange Binance to accept payment via Binance Pay.


Microsoft chief says deep fakes are biggest AI concern

Microsoft chief says deep fakes are biggest AI concern
Updated 26 May 2023

Microsoft chief says deep fakes are biggest AI concern

Microsoft chief says deep fakes are biggest AI concern
  • Brad Smith urged for system to recognize AI-generated photos and videos
  • Microsoft president also called for licensing most critical forms of AI

WASHINGTON: Microsoft President Brad Smith said Thursday that his biggest concern around artificial intelligence was deep fakes, realistic looking but false content.
In a speech in Washington aimed at addressing the issue of how best to regulate AI, which went from wonky to widespread with the arrival of OpenAI’s ChatGPT, Smith called for steps to ensure that people know when a photo or video is real and when it is generated by AI, potentially for nefarious purposes.
“We’re going have to address the issues around deep fakes. We’re going to have to address in particular what we worry about most foreign cyber influence operations, the kinds of activities that are already taking place by the Russian government, the Chinese, the Iranians,” he said.
“We need to take steps to protect against the alteration of legitimate content with an intent to deceive or defraud people through the use of AI.”
Smith also called for licensing for the most critical forms of AI with “obligations to protect security, physical security, cybersecurity, national security.”
“We will need a new generation of export controls, at least the evolution of the export controls we have, to ensure that these models are not stolen or not used in ways that would violate the country’s export control requirements,” he said.
For weeks, lawmakers in Washington have struggled with what laws to pass to control AI even as companies large and small have raced to bring increasingly versatile AI to market.
Last week, Sam Altman, CEO of OpenAI, the startup behind ChatGPT, told a Senate panel in his first appearance before Congress that use of AI interfere with election integrity is a “significant area of concern,” adding that it needs regulation.
Altman, whose OpenAI is backed by Microsoft, also called for global cooperation on AI and incentives for safety compliance.
Smith also argued in the speech, and in a blog post issued on Thursday, that people needed to be held accountable for any problems caused by AI and he urged lawmakers to ensure that safety brakes be put on AI used to control the electric grid, water supply and other critical infrastructure so that humans remain in control.
He urged use of a “Know Your Customer“-style system for developers of powerful AI models to keep tabs on how their technology is used and to inform the public of what content AI is creating so they can identify faked videos.
Some proposals being considered on Capitol Hill would focus on AI that may put people’s lives or livelihoods at risk, like in medicine and finance. Others are pushing for rules to ensure AI is not used to discriminate or violate civil rights.