A+E Networks will pay $250 million for a 10 percent stake in Vice Media, a spokesman from Vice told TheWrap.
The investment means that Vice has an estimated $2.5 billion valuation. Friday morning talks between Vice and Time Warner reportedly broke down because Time Warner disagreed with the valuation number. Time Warner placed the valuation at $2 billion. The two companies were discussing a joint venture, including a potential situation where Time Warner would give Vice control of cable news channel HLN.
Vice, which is aiming to be the Millennial news source, is a digital media company that operates a network of online channels that covers news, sports, technology and music. A+E, which is jointly owned by Walt Disney and Hearst Corporation, will offer Vice a platform to reach Millennials on a larger scale. The final details on the sale could be announced as early as next week.
Last year, Vice sold a 5 percent stake to 21st Century Fox for $70 million. At the time it was valued at $1.4 billion.
Vice is known for the publicity stunt involving taking Dennis Rodman to North Korea to talk with Kim Jong Un. Vice has been moving away from that style of content and gravitating toward more serious news, like with its newsmagazine show that currently airs on Time Warner-owned HBO.
Vice is expected to produce digital and cable content for A+E but will not take over any of the cable channels at this time.
The deal was negotiated between Nancy Dubuc, president of A+E Networks, and Vice.