Gawker Media files for Chapter 11 bankruptcy and makes plans to sell to publisher Ziff Davis three months after losing $140million judgment to Hulk Hogan
Gawker Media has filed for Chapter 11 bankruptcy.
The move comes three months after a Florida jury awarded Hulk Hogan $140.1million in damages after he sued the company for publishing excerpts from a sex tape he made almost a decade ago.
The ruling was upheld by Florida Circuit Judge Pamela Campbell late last month, who made the decision to not order a new trial in the case or adjust the damages awarded to Hogan by the jury.
Gawker is in the process of appealing the March jury verdict but was forced to hand over a $50million bond after the jury verdict.
The Wall Street Journal reports that the company will now be put up for auction and that publisher Ziff Davis will make a opening bid of $100million, which Gawker is preparing to accept.
They are also reporting Gawker has received a $22million bankruptcy loan to keep the business afloat prior to their sale at auction.
Gawker Media has filed for bankruptcy (founder Nick Denton above in March)
A list of creditors that was included in the company's filing reveals that Gawker Media owes $130million to Terry Bollea, which is Hogan's legal name
Denton lashed out at Peter Thiel on Twitter Friday, three weeks after it was first revealed he funded Hogan's court case against the company
Ziff Davis chief executive Vivek Shah emialed his employees about the possible purchase on Friday, saying: 'There’s a tremendous fit between the two organizations, from brands to audience to monetization. We look forward to the possibility of adding these great brands—and the talented people who support them—to the Ziff Davis family.'
He went on to write: 'In the event we become the acquirer, the additions of Gizmodo, Lifehacker and Kotaku would fortify our position in consumer tech and gaming. With the addition of Jalopnik, Deadspin and Jezebel, we would broaden our position as a lifestyle publisher.'
Shah then closed the internal memo by writing: 'We look forward to the possibility of adding these great brands – and the talented people who support them – to the Ziff Davis family.'
The auction is set to take place in July, and other bids will be accepted.
The company made the decision to file for bankruptcy in order to be able to keep its online properties up and running and pay its staff.
'We are encouraged by the agreement with Ziff Davis, one of the most rigorously managed and profitable companies in digital media,' said Denton in a statement Friday.
'A combination would marry Ziff Davis’ strength in e-commerce, licensing and video with GMG’s premium media brands.”
A list of creditors that was included in the company's filing and posted on Twitter by Max Frumes reveals that Gawker Media owes $130million to Terry Bollea, which is Hogan's legal name. That amount is 'disputed' it is noted on the filing.
The company does not owe the wrestler the full $140.1million because the jury ruled that Denton should be responsible for $10million of the $25.1million they awarded Hogan in punitive damages.
The jury also ordered former Gawker editor AJ Daulerio to pay $100,000 of the punitive damages.
The company also owes and a little over $115,000 to the law firm of Morrison Cohen, approximately $82,000 to the insurance brokerage Risk Strategies Company and another $82,000 to SimpleReach Inc., a content measurement and distribution start-up founded in 2010.
Those three claims are listed as 'trade debt.'
The money made from the sale will go into a fund to pay for future legal costs, which will likely run high as they appeal the Hogan ruling and higher should they ultimately be forced to pay out any money in damages.
Should any money be left over at the end of that it would be divided between Denton and the company's other shareholders.
- Gawker Media filed for Chapter 11 bankruptcy Friday and will be put up for auction later this month
- The company is making plans to sell to publisher Ziff Davis, who are offering a bid of $100million
- The auction is expected to happy some time in July and the company has received a $22million loan to stay afloat
- The move comes three months after a jury awarded $140.1million to Hulk Hogan in his sex tape lawsuit against the site
- A list of creditors that was included in the company's filing reveals that Gawker Media owes $130million to Terry Bollea, Hogan's legal name
- It was revealed late last month that billionaire PayPal founder Peter Thiel funded Hogan's case against Gawker
Gawker Media has filed for Chapter 11 bankruptcy.
The move comes three months after a Florida jury awarded Hulk Hogan $140.1million in damages after he sued the company for publishing excerpts from a sex tape he made almost a decade ago.
The ruling was upheld by Florida Circuit Judge Pamela Campbell late last month, who made the decision to not order a new trial in the case or adjust the damages awarded to Hogan by the jury.
Gawker is in the process of appealing the March jury verdict but was forced to hand over a $50million bond after the jury verdict.
The Wall Street Journal reports that the company will now be put up for auction and that publisher Ziff Davis will make a opening bid of $100million, which Gawker is preparing to accept.
They are also reporting Gawker has received a $22million bankruptcy loan to keep the business afloat prior to their sale at auction.
Gawker Media has filed for bankruptcy (founder Nick Denton above in March)
A list of creditors that was included in the company's filing reveals that Gawker Media owes $130million to Terry Bollea, which is Hogan's legal name
Denton lashed out at Peter Thiel on Twitter Friday, three weeks after it was first revealed he funded Hogan's court case against the company
Ziff Davis chief executive Vivek Shah emialed his employees about the possible purchase on Friday, saying: 'There’s a tremendous fit between the two organizations, from brands to audience to monetization. We look forward to the possibility of adding these great brands—and the talented people who support them—to the Ziff Davis family.'
He went on to write: 'In the event we become the acquirer, the additions of Gizmodo, Lifehacker and Kotaku would fortify our position in consumer tech and gaming. With the addition of Jalopnik, Deadspin and Jezebel, we would broaden our position as a lifestyle publisher.'
Shah then closed the internal memo by writing: 'We look forward to the possibility of adding these great brands – and the talented people who support them – to the Ziff Davis family.'
The auction is set to take place in July, and other bids will be accepted.
The company made the decision to file for bankruptcy in order to be able to keep its online properties up and running and pay its staff.
'We are encouraged by the agreement with Ziff Davis, one of the most rigorously managed and profitable companies in digital media,' said Denton in a statement Friday.
'A combination would marry Ziff Davis’ strength in e-commerce, licensing and video with GMG’s premium media brands.”
A list of creditors that was included in the company's filing and posted on Twitter by Max Frumes reveals that Gawker Media owes $130million to Terry Bollea, which is Hogan's legal name. That amount is 'disputed' it is noted on the filing.
The company does not owe the wrestler the full $140.1million because the jury ruled that Denton should be responsible for $10million of the $25.1million they awarded Hogan in punitive damages.
The jury also ordered former Gawker editor AJ Daulerio to pay $100,000 of the punitive damages.
The company also owes and a little over $115,000 to the law firm of Morrison Cohen, approximately $82,000 to the insurance brokerage Risk Strategies Company and another $82,000 to SimpleReach Inc., a content measurement and distribution start-up founded in 2010.
Those three claims are listed as 'trade debt.'
The money made from the sale will go into a fund to pay for future legal costs, which will likely run high as they appeal the Hogan ruling and higher should they ultimately be forced to pay out any money in damages.
Should any money be left over at the end of that it would be divided between Denton and the company's other shareholders.
