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.
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.
