Gawker Files for Bankruptcy After Losing $140 Million Hulk Hogan Case
The owner of PC Mag, Ziff Davis, has agreed to an opening bid between $90 million to $100 million, while other bids are expected.
Gawker lost a $140 million invasion-of-privacy suit against the wrestler months ago. The company was taken to court after it posted a sex tape of Hogan online.
It was recently revealed that billionaire Peter Thiel, co-founder of PayPal, was behind the lawsuit.
In May, Gawker Media hired an investment banker to explore the company’s options, including a potential sale.
The media company said at the time it expects to win an appeal against Hogan, and that it’s always said it was exploring contingency plans.
The money from the sale will be put in escrow while the company appeals the Hogan case, according to Politico.
If the judgement is upheld on appeal, the money held in escrow will be released to the wrestler.
If the decision is overturned during the appeal, the money will be returned to Gawker CEO Nicj Denton and the company’s other shareholders.