Gawker files for bankruptcy after $140m Hogan leg drop

Gawker Media has not commented on the filing.

The judge agreed to postpone payment of the $140 million judgment while Gawker pursued its appeal, but required the defendants to put up their shares of the company as collateral to be held by Hogan’s lawyers.

Seeking protection of its remaining assets under U.S. bankruptcy code Chapter 11, Gawker said the brands would be sold “free and clear of legal liabilities and maximize value for all stakeholders”.

Gawker Media, the notorious media company that thrived off celebrity scandals and controversies, has filed for bankruptcy on Friday.

Gawker Media LLC, the online publisher ordered by a USA court to pay $140 million to former wrestler Hulk Hogan over the publication of a sex tape, filed for Chapter 11 bankruptcy protection on Friday and is planning to put itself up for sale.

Hulk Hogan testifying against Gawker in court.

It said the sale will be conducted through a bankruptcy court supervised auction, in which other bidders may also participate.

Hogan’s lawsuit accused Gawker, Denton and former Gawker editor A J Daulerio of violating his privacy by publishing a one minute, 41-second edited video clip featuring Hogan having sex with the wife of his then-best friend, the radio shock jock Bubba the Love Sponge Clem.

Earlier this year, Hogan sued Gawker for $100 million for defamation, loss of privacy, and emotional pain. Apparently, Ziff will be able to buy the company within $100 million.

Ziff Davis chief executive Vivek Shah announced to his staff that he expects the auction to take place sometime in July.

The dispute took on a new coloration last month when billionaire technology investor Peter Thiel – a target of Gawker stories – revealed that he had bankrolled Hogan’s suit. “We look forward to the possibility of adding these great brands-and the talented people who support them-to the Ziff Davis family”.

“I saw Gawker pioneer a unique and incredibly damaging way of getting attention by bullying people even when there was no connection with the public interest”, Thiel, whom Gawker reportedly outed as gay in 2007, told The New York Times.

Weeks earlier, Thiel acknowledged in an interview with The New York Times that he was financially supporting Bollea’s lawsuit, as well as other lawsuits against the organization.

“It’s less about revenge and more about specific deterrence”.

In order to comply with Florida state law regarding bond for defendants Denton pledged his most meaningful asset, about $800 million worth of stock in Gawker media, according to Berry.