Gawker Files for Bankruptcy After Losing $140 Million Hulk Hogan Case

By Denisse Moreno, Epoch Times
June 10, 2016 1:48 pm Last Updated: June 10, 2016 1:48 pm

Gawker Media Group Inc., parent company of Gawker Media, has filed for Chapter 11 bankruptcy after an expensive court battle against wrestler Hulk Hogan, it was reported on June 10.

Gawker’s file is an attempt to save its assets from seizure by Hogan and the move triggered a bankruptcy auction, according to Politico.

The owner of PC Mag, Ziff Davis, has agreed to an opening bid between $90 million to $100 million, while other bids are expected.

Although Gawker has filed for bankruptcy, it does not plan to stop its operations. The media company will operate as usual while the bankruptcy process proceeds and during the Hogan appeal.

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.

ST PETERSBURG, FL - MARCH 08:  NY POST OUT  Terry Bollea, aka Hulk Hogan, testifies in court during his trial against Gawker Media at the Pinellas County Courthouse on March 8, 2016 in St Petersburg, Florida.  Bollea is taking legal action against Gawker in a USD 100 million lawsuit for releasing a video of him having sex with his best friends wife.  (Photo by John Pendygraft-Pool/Getty Images)
Terry Bollea, aka Hulk Hogan, testifies during his trial against Gawker Media at the Pinellas County Courthouse on March 8, 2016, in St Petersburg, Fla. Bollea sued Gawker for releasing a video of him having sex with his best friend’s wife. (John Pendygraft-Pool/Getty Images)

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.