Digital gossip pioneers Gawker Media Group today filed for Chapter 11 bankruptcy protection in Manhattan court, and publisher and digital media brand Ziff Davis has since entered into an asset purchase agreement to buy the entirely of that company’s media properties.
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“There’s a tremendous fit between the two organizations”, Ziff Davis CEO Vivek Shah wrote in a staff memo that was obtained by USA TODAY.
In March, a six-person jury awarded $60 million to Hogan, 62, for emotional distress and $55 million for economic damages, after Gawker published in 2012 a 41-second edited video clip featuring him having sex with the wife of his then-best friend, the radio shock jock Bubba the Love Sponge Clem.
Gawker Media founder Nick Denton.
The move comes as Gawker appeals a $140 million judgment against it for posting excerpts of a Hulk Hogan sex tape.
According to Re/code, both Gawker and its banker expect that to happen – Denton even said a year ago ahead of the trial that he thought the company might be worth $250 million to $350 million.
The lawsuit, filed in US bankruptcy court in NY, argues that the legal actions would “significantly interfere with or otherwise impair the Debtor’s efforts to reorganize”.
It was revealed late last month that tech billionaire Peter Thiel has been helping out with Hogan’s legal expenses.
“We have every intention to continue to pursue our judgment against Gawker and to hold them accountable for violating Mr. Bollea’s privacy whether it be in the bankruptcy court or any other court”, David Houston, an attorney for Hogan, said in a statement on Friday. USA Today reports that Gawker Media listed its estimated assets at $50 million to $100 million and liabilities of $100 million to $500 million in its filing with the U.S. Bankruptcy Court for the Southern District of NY.
There’s even talk how Hulk Hogan could become the owner of Gawker.
“The bankruptcy process will involve an auction of the company, including its seven main media brands”, Gawker stated. “Our sites will thrive – under new ownership – and we’ll win in court”, Denton said in a tweet. Gawker lost and had to shell out $115 million in a settlement.
The bankruptcy filing also seeks to prevent Hogan from going after Denton’s personal wealth and assets. Because of the element of intent, Gawker can’t just wipe away the judgment with a Chapter 11 filing, so they’re listing Hogan as an unsecured creditor in hopes that a bankruptcy judge will take pity and pay out to others first.
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A spokesman for Peter Thiel declined to comment on Gawker’s bankruptcy filing.
