Gawker’s Nick Denton Files For Bankruptcy

Gawker declared bankruptcy in June, and the company is set to undergo a bidding process that will end with its publications under a new owner.

Gawker founder Nick Denton is planning to file for personal bankruptcy on Monday, as his legal battle with Hulk Hogan – backed by billionaire tech investor Peter Thiel – continues. (The debtor has indicated in testimony last week that there are 15 potential bidders who have signed non-disclosure agreements and three serious contenders.) In testimony before a judge, Denton had called the possibility of filing for personal bankruptcy a needless distraction that would only hurt Gawker’s creditors like Hogan.

“Gawker Media Group’s resilient brands and people will thrive under new ownership, when the sale closes in the next few weeks”, Denton posted Monday on Twitter. An auction is scheduled for mid-August.

While Gawker has come under fire for its no-holds-barred approach to celebrity coverage, the case also raised questions about whether powerful interests can use their resources to silence media for unfavorable coverage.

In a memo to Gawker Media staff, Denton wrote that it’s “disturbing to live in a world in which a billionaire can bully journalists because he didn’t like the coverage”.

According to Gawker, Thiel has had it in for the company since 2007, when it outed him as gay. “If even one person has been spared the humiliation that Mr. Bollea suffered, this is a victory”. Gawker has argued that its footage was newsworthy and protected by the First Amendment.

In March, a Florida jury awarded Hogan a total of $140 million.