By Sahil Patel
A+E Networks has agreed to pay $250 million in exchange for a 10% stake in Vice Media, a deal that values the digital media company at $2.5 billion.
This news, first reported by the Financial Times, comes a few hours after the New York Times reported that Time Warner, which had been in discussions to buy half of Vice Media since June, had left the negotiating table. That decision stemmed from disagreements over what Vice’s valuation should be.
Last year, 21st Century Fox paid $70 million for a 5% stake in Vice, giving the company a $1.4 billion valuation as a result.
Time Warner’s discussions could have valued Vice at $2.2 billion in exchange for half of the company.
If the deal had gone through, multiple scenarios would have come into play, including the potential for Vice to take ownership of HLN. This would have given Vice something it covets — its own 24-hour news network. It’s not a complete end to the relationship between the two companies, though. Vice currently produces a documentary show for HBO, which is owned by Time Warner.
It’s not clear what the future of Vice is with A+E Networks now in the fold. But the company’s dream of a TV channel is getting closer to reality.
This article has been updated from its original version to include news of A+E Network’s deal with Vice.