Vice has raised a new $450 million round of funding from TPG, Vice Media CEO Shane Smith told CNBC.

With the minority investment from TPG, the company is now valued at $5.7 billion, though Smith joked he "generally round[s] it up to $6 [billion] because it's easier to say."

"This will allow us to: build up the largest millennial video library in the world - enabling VICE to widen our offering to include; news, food, music, fashion, art, travel, gaming, lifestyle, scripted and feature films," Smith said in a release.

Smith told CNBC's "Squawk on the Street" getting an investment form a third-party private equity firm could help Vice take the next steps towards an IPO.

"It's what we would do if we were going to go public — is get a third party paying and start building our book, and bringing in revenue on a sort of hockey stick basis," Smith said to CNBC. "So that theoretical IPO would look very sexy."

To figure out what to do with the new funds, Smith said the company looked at what Vice has done in broadcast and mobile. Vice hopes to expand its other verticals like music-focused property Noisey, which Smith believes can be a "billion-dollar brand." It also wants to create more direct-to-consumer offerings, but needs to expand on scripted programming. The company will also use the funds to launch Vice Studios for more multi-screen content, as well as expand internationally.

"We need to build a much bigger library," Smith told CNBC. "We already do news. We do docs, and we do reality, but we want to do a lot of scripted and feature films."

TPG is also an investor in CAA, Spotify and AirBnB. Vice plans to leverage the partnership to expand its technology operations.

"Media is probably at its most dynamic, most evolutionary time in its history," Smith said in a release. "With Facebook and Google taking an ever-growing piece of the online advertising pie, looming 'skinny bundles' and OTT/DTC offerings exploding the media status quo - networks have to be nimble, smart and fast moving."

Previous investors Disney and Fox did not participate in this funding round, a Vice spokesperson said.