Gawker files for bankruptcy, to sell itself to Ziff Davis

Gawker is filing for bankruptcy protection and will sell itself rather than pay $140 million to pro wrestler Hulk Hogan.

The company says it plans to sell itself to publishing company Ziff Davis.

Gawker filed for Chapter 11 bankruptcy protection, about three months after Hogan won a lawsuit against the online gossip and news publisher. The sale will be conducted through bankruptcy court so other bidders could emerge.

The New York company said in the filing that it has as much as $500 million in debt and up to $100 million in assets.

Hogan sued Gawker after it posted a video of him having sex with a friend’s wife. Hogan was awarded $115 million in compensatory damages plus an added $25.1 million in punitive damages.

It was later revealed that billionaire tech investor Peter Thiel had been secretly funding Hogan’s lawsuit.

Thiel, who co-founded PayPal and was an early investor in Facebook, has been a frequent target of Gawker writers, who have written unflattering pieces about Thiel’s political beliefs and utopian goals. One 2007 post outed Thiel as gay. Another Gawker site, Valleywag, ran a number of stories skewering Facebook, which provided a big chunk of Thiel’s estimated $2.7 billion fortune.

A spokesman for Thiel said he had no comment on Friday.

In the filing, Hogan, whose real name is Terry Bollea, was listed as Gawker’s biggest creditor.

Gawker founder Nick Denton said in a statement that Ziff Davis’ e-commerce, licensing and video assets would be a good fit with Gawker’s websites, which include tech site Gizmodo, sports site Deadpsin, video-game site Kotaku, celebrity and women-focused site Jezebel, news and gossip site Gawker, car-site Jalopnik and self-help site Lifehacker.

Republished with permission of the Associated Press.

The post Gawker files for bankruptcy, to sell itself to Ziff Davis appeared first on SaintPetersBlog.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s