Gawker Media Files for Bankruptcy After $140 Million Hulk Hogan Controversy

Gawker Media filed for bankruptcy on June 10^th, according to reports from the New York Court District. This comes as a result of Gawker Media’s legal battle with Terry Bollea, better known as Hulk Hogan. Bollea sued Gawker Media after the site published a clip of his sex tape coupled with an in-depth analysis. The company was recently ordered to pay $140 million in damages to Bollea.

Among others, this lawsuit has been funded by investor Peter Thiel. A spokesperson for Thiel declined to comment. Gawker Media CEO, Nick Denton, mentioned in a tweet, “Even with his billions, Thiel will not silence our writers. Our sites will thrive –under new ownership — and we’ll win in court.”

There have been rumors that Ziff Davis plans to buy Gawker’s blogs without assuming their liabilities if no other offers come up. Gawker’s properties include Gizmodo, Lifehacker, and Deadpan, which are expected to continue operation even in the midst of the bankruptcy proceedings. Ziff plans to start the auction at $90 to $100 million, which will need to be approved by the bankruptcy court.

The auction for this sale is expected to happen in late July. The filings state that the company is worth about $50 to $100 million and it faces liabilities, including Bollea’s payout, of $100 to $500 million.

What do you think about the case at hand? Let us know in the comments below!

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