Gawker files for bankruptcy

Screen Shot 2016-06-10 at 1.21.29 PM

Well everyone had an idea that this was coming…

Gawker and Nick Denton say they won’t pay Hulk Hogan and Peter Thiel $140 million.

Gawker has told it employees it still plans to fight the Thiel/Hogan case and to operate its publishing business while it does so. But it is also now formally entertaining offers to buy the company and says it has a firm bid from publisher Ziff Davis to buy the entire operation for less than $100 million.

Gawker and its banker Mark Patricof assume that the company will eventually see higher bids while it is in bankruptcy protection. Last year, in advance of the Hogan trial, Denton figured his company was worth something in the $250 million to $300 million range.

[Source: ReCode]

The filing comes as Gawker’s legal battle with the wrestler Hulk Hogan (real name Terry Bollea) drags on. Hogan sued Gawker after the site published a clip of his sex tape and a blog post analyzing it. A jury awarded Hogan $115 million in March, a decision which Gawker is appealing.

According to the filing, Gawker’s assets are valued between $50 and $100 million and faces liabilities up to $500 million.

[Source: TechCrunch]