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Vice Media files for bankruptcy, but a buyout is on the cards

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It’s been an extremely tumultuous few weeks and months for many in the news media world. Fragmented audiences and the failure to find a sustainable economic model have forced a growing number of firms to downsize or close as Jonny Walfisz reports.

This week, Vice Media filed for Chapter 11 bankruptcy, potentially spelling the end of one of the most notable youth-oriented news organisations.

In April, the Pulitzer Prize-winning digital media outlet Buzzfeed News announced it was shutting down as part of a cost-cutting drive by its parent organisation. That same day, Insider laid off 10 per cent of its staff. The month prior, independent British media outlet gal-dem announced it was ceasing publication for financial reasons.

When news came through earlier this month that Vice Media might file for bankruptcy, there were fears another of the big new media giants was about to go a similar way. However, as the company officially files for Chapter 11 bankruptcy, deals are in the works to buy it out of its debt.

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Masters of the universe

A consortium of lenders – Fortress Investment Group, Soros Fund Management and Monroe Capital – is buying Vice for about $225 million, in addition to taking on a significant amount of the company’s debt. Other parties will be able to submit bids as well.

Vice said it expects the sale to be wrapped up in the next two to three months. It said that during the process its media brands will continue to produce content and the company will keep paying its employees and vendors.

Vice Media’s roots date back to 1994, with the launch of Vice’s original punk magazine in Montreal. Vice soon moved to New York and built itself into a global media company.

Over the years, Vice developed a reputation for in-your-face journalism that covered daring stories around the world that particularly resonated with new, young audiences across digital platforms. The media company’s assets also include film and TV production, an in-house marketing agency, and brands such as Refinery 29 and Unbothered.

The media company has struggled to turn around profits in recent years. Monday’s filings show that Vice has total outstanding debt of $834 million.

In 2017, Vice was valued at $5.7 billion. Now, however, most experts estimate the company is worth just a fraction of that, The New York Times reported earlier this month.

Monday’s bankruptcy filing arrives just months after Nancy Dubuc announced that she would be stepping down as CEO of the company. Vice named longtime Vice executives Dixon and Lokhandwala as co-CEOs.

Dubuc replaced Vice co-founder Shane Smith in 2018, a turbulent time at Vice after a 2017 Times investigation uncovered rampant sexual harassment and misconduct at the company.

Digital advertising has plummeted this year, cutting into the profitability of major tech companies from Google to Facebook.

“Advertising is down across the board, so it’s a test for a lot of the digital publications,” Megan Duncan, assistant professor at Virginia Tech’s School of Communication, told The Associated Press.

Duncan and others also noted the changing landscape of social media – a space where outlets like Vice once thrived in terms of reaching audiences.

“One of the things that I think really hurt Vice, and in turn BuzzFeed as well, is social media networks like Facebook changing their algorithms,” Jason Mollica, professor at American University’s School of Communication, said. “When you’re not pulling in the numbers that you would expect advertising-wise, you’re losing money.”

 

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Ontario school boards sue social media giants for $4.5B

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Four major Ontario school boards are taking some of the largest social media companies to court over their products, alleging the way they’re designed has negatively rewired the way children think, behave and learn and disrupted the way schools operate.

The public district school boards of Toronto, Peel and Ottawa-Carleton, along with Toronto’s Catholic counterpart, are looking for about $4.5 billion in total damages from Meta Platforms Inc., Snap Inc. and ByteDance Ltd., which operate the platforms Facebook and Instagram, Snapchat and TikTok respectively, according to separate but similar statements of claim filed Wednesday.

“These social media companies … have knowingly created a product that is addictive and marketed to kids,” said Rachel Chernos Lin, the chair of the Toronto District School Board, on CBC Radio’s Metro Morning on Thursday.

“We need them to be held accountable and we need them to create safer products.”

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Social media giants ‘knowingly’ harming children, TDSB chair says in wake of lawsuit

3 hours ago

Duration 5:53

Four of Ontario’s largest school boards, including the Toronto District School Board (TDSB), have launched lawsuits against social media giants behind Meta, Snapchat and TikTok for allegedly causing harm to students. Metro Morning host David Common spoke with TDSB chair Rachel Chernos Lin about the action.

The allegations have yet to be proven in court, and there is no set date for when they will be heard. CBC Toronto has reached out to the companies named for comment.

The school boards, speaking under a new coalition called Schools for Social Media Change, allege students are experiencing an “attention, learning, and mental health crisis” because of “prolific and compulsive use of social media products,” in a news release.

They allege the platforms facilitate and promote cyberbullying, harassment, hate speech and misinformation, and have a part in escalating physical violence and conflicts in schools, according to the statements of claim.

They also argue these apps are “purposefully designed” to deliver harmful content to students dealing with topics such as suicidal ideation, drugs, self-harm, alcohol, eating disorders, hate speech and sex — particularly content encouraging “non-consensual” sexual activity.

Trying to respond to those problems has caused “massive strains” on the boards’ funds, including in additional mental health programming and staff, IT costs and administrative resources, the release says. The boards call on the social media giants to “remediate” the costs to the larger education system and redesign their products to keep students safe.

Lawsuit may be first of its kind in Canada

Hundreds of school boards in the United States, along with some states, have launched similar lawsuits against social media companies.

Last fall, over 30 states accused Meta Platforms Inc. of harming young people’s mental health and contributing to the youth mental health crisis by knowingly designing features on Instagram and Facebook that cause children to be addicted to its platforms.

In an email, a spokesperson for Snap said Snapchat was “intentionally designed to be different from traditional social media.”

“Snapchat opens directly to a camera — rather than a feed of content — and has no traditional public likes or comments. While we will always have more work to do, we feel good about the role Snapchat plays in helping close friends feel connected, happy and prepared as they face the many challenges of adolescence.”

What social media scrolling is doing to kids’ brains

5 months ago

Duration 7:52

With most children and teenagers spending hours a day on a smartphone, CBC’s Christine Birak breaks down what research shows about how using social media is changing kids’ behaviour, if it’s rewiring their brains and what can be done about it.

Neinstein LLP, a Toronto-based firm, is representing the school boards. The boards will not be responsible for any costs related to the suit unless a successful outcome is reached, the release says.

Duncan Embury, a partner and head of litigation at Neinstein, told CBC News the named companies are “mainly responsible” for the social media products that kids use, and share “common” designs or algorithms that lead to “problematic use.”

To his knowledge, this is the first case of its kind in Canada.

“Based on what we’re seeing and what we’re hearing from our educators, I think this is a problem that is pervasive across our system and I wouldn’t be surprised if there [were] more boards that took this step,” said Embury.

Ford ‘disagrees’ with move

At an unrelated news conference on Thursday, Ontario Premier Doug Ford said he “disagrees” with the schools boards’ lawsuits.

“What are they spending on lawyer fees to go after these massive companies that have endless cash to fight this? Let’s focus on the kids, not about this other nonsense that they’re looking to fight in court,” he said.

WATCH | Ford disagrees with school board lawsuits against social media companies:

Ford disagrees with school board lawsuits against social media companies

2 hours ago

Duration 0:41

Ontario Premier Doug Ford responded to news Thursday that four major school boards in the province are suing some of the largest social media companies over alleged harm to young people, saying he disagrees with the boards’ action. “Let’s focus on the kids, not about this other nonsense,” he told reporters.

CBC News spoke to parents with children who attend schools in the Toronto District School Board. While they all agree social media apps are a problem, they differ in what approach they think should be used to regulate them.

“Just take the phones away,” said Gillian Henderson.

“I don’t think we need to sue anybody, that seems like a long, expensive process. Just take away their phones in class and give them back to them when they need them.”

The board has recently moved to develop a policy to limit cellphone use in classrooms, which includes potential phone bans and social media restrictions. It previously said staff had problems enforcing policies stating students should only use phones for educational purposes only.

Two separate pictures of a woman and a man shown together.
Gillian Henderson and Shyon Baumann have children who attend schools in the Toronto District School Board. Henderson thinks schools should take students’ phones away in class, while Baumann says it may be helpful to force tech giants to decrease harm from their apps through the court system. (Paul Smith/CBC)

Shyon Baumann said school boards could use some help in reducing screen time.

“If the school boards can do what they can trying to police it, that would be great. But it would be also great if the app creators did what they could to make the harms decrease,” he said.

“If they’re not going to make voluntary changes, then maybe doing it through the courts is the most effective way.”

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Five of the best books about social media – The Guardian

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From Covid conspiracy theories to recent speculations about Catherine, Princess of Wales, social media is at the heart of how we share information, and misinformation, with one another in the 21st century. For those who want to have a better understanding of social media and how it affects us, here are a selection of titles that explore how we consume, share, and manipulate information on social media platforms.


So You’ve Been Publicly Shamed by Jon Ronson

Journalist and author Jon Ronson argues we live in “a great renaissance of public shaming”, and this book tracks down some of the many victims of online shaming to understand what happened to them as a result. In the process, we learn about Ronson’s own values, question our own, and figure out how we’ve reached a time where an online feed can become a social courtroom.


Doppelganger by Naomi Klein

After getting repeatedly mistaken for feminist-turned-conspiracy-theorist Naomi Wolf online, and then in real life, Naomi Klein penned Doppelganger as an earnest and introspective look at herself. The book explores how conspiracy theories and lies spread quickly through the internet, and how the social and political climate of the physical world manipulates the way we experience online platforms. While not exclusively about social media, the story behind Doppelganger is a perfect case of the ways our digital lives and identities intersect with what we experience in reality – and how dangerous the repercussions of spreading online lies can be.

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Irresistible by Adam Alter

Have you ever wondered why you can’t stop scrolling on your TikTok “for you” page, or obsessing over how many likes you got on a recent Facebook post? You’re not alone, and Adam Alter’s book explores why we get sucked into the digital world. He answers what makes an online addiction, whether it be to emails, Instagram, or Netflix, different to other forms of addiction – and warns us of the dangers this could cause long-term. As well as introspection, he gives practical solutions to how digital addiction can be controlled for good.


Extremely Online by Taylor Lorenz

Journalist Taylor Lorenz calls this book “a social history of social media”; she uses real-life case studies of mothers, teenagers, politicians and influencers to assess how social media touches all demographics. Extremely Online explores topics from the digital economy and influencer culture, to what makes moments go viral on Twitter and how this is all influencing the way we socialise and understand the world. At its core, this book explores the idea of what it means to connect – and how social media as an innovation has warped communication.


TikTok Boom by Chris Stokel-Walker

TikTok is arguably one of the most significant advancements in social media in the past two decades. This book by journalist and writer Chris Stokel-Walker explores how the app is changing the way users interact with content. It moves away from the social-commentary style of the other books mentioned here, instead using business and technology analysis as a means to describe wider socio-political repercussions of the app. Stokel-Walker bridges the gap between the digital and the physical, showing the feedback loop that exists between what happens online on platforms such as TikTok and the real world.

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Ontario school boards take social media giants to court for disrupting student learning – CBC.ca

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Four major Ontario school boards are taking some of the largest social media companies to court over their products, alleging the way they’re designed have negatively rewired the way children think, behave and learn and have thus disrupted the way schools operate.

The public district school boards of Toronto, Peel and Ottawa, along with Toronto’s Catholic counterpart, are looking for about $4.5 billion in damages from Meta Platforms Inc., Snap Inc. and ByteDance Ltd., which operate the platforms Facebook and Instagram, Snapchat and TikTok respectively, according to statements of claim filed Wednesday.

“The influence of social media on today’s youth at school cannot be denied. It leads to pervasive problems such as distraction, social withdrawal, cyberbullying, a rapid escalation of aggression, and mental health challenges,” said Colleen Russell-Rawlins, director of education at the Toronto District School Board, in a release Thursday.

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“Therefore, it is imperative that we take steps to ensure the well-being of our youth. We are calling for measures to be implemented to mitigate these harms and prioritize the mental health and academic success of our future generation.” 

The school boards, operating under a new coalition called Schools for Social Media Change, allege students are experiencing an “attention, learning, and mental health crisis” because of “prolific and compulsive use of social media products.”

Trying to respond to this has caused “massive strains” on the group’s funds, including in additional mental health programming and staff, IT costs and administrative resources, the release states. The boards call on the social media giants to “remediate” the costs to the larger education system and redesign their products to keep students safe.

Neinstein LLP, a Toronto-based firm, is representing the school boards in their lawsuit. The boards will not be responsible for any costs related to the lawsuit unless a successful outcome is reached, the release states.

“A strong education system is the foundation of our society and our community. Social media products and the changes in behaviour, judgment and attention that they cause pose a threat to that system and to the student population our schools serve,” said Duncan Embury, a partner and head of litigation at Neinstein.

CBC Toronto has reached out to the companies named for comment.

The latest lawsuit comes after a large civil suit against Meta Platforms Inc. was initiated in the U.S. last fall. Over 30 states accused Meta Platforms Inc. of harming young people’s mental health and contributing to the youth mental health crisis by knowingly designing features on Instagram and Facebook that cause children to be addicted to its platforms.

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