Gawker Files For Bankruptcy After A Florida Court Upholds Jury Judgment Pronounced in March

Gawker Media Group, an online news site has filed for bankruptcy on June 10 after a Florida court upholds a $140 million (£97 million) jury judgment of a legal fight with Hulk Hogan, former professional wrestler. 

Silicon Valley billionaire Peter Thiel has allegedly funded Hogan in his legal battle against the online media company. A spokesperson for Thiel has declined to comment over the chapter 11 filing with a Manhattan court.

The New York City based blog site has already received the inaugural bid of $90 million from Ziff Davis LLC, a digital media company and magazine publisher. Seeking protection under bankruptcy may put end to a 14-year old business pioneering in online media after it has started rolling with entrepreneurship of Nick Denton, reports The Wall Street Journal.

Gawker has represented itself as an icon of media fascination through the aggressive as well as lurid style of tabloid reporting. Throughout the journey, the blog network has drawn ire from numerous enemies who have been a subject of its media contents.

Terry Bollea, popularly known as Hulk Hogan has declined to issue a stay keeping Gawker’s appeal pending and that has apparently led the blog network to consider for getting sold. Hogan has sued Gawker for publishing a sex video with one of his friend’s wife.

The media house has been encouraged with the purchase offer from Ziff Davis and waiting to consider other offers while going through bankruptcy process, informs Gawker founder Nick Denton through a statement.

According to his last year’s estimation, value of Gawker Media may be within the range of $250 million to $300 million. Its asset value lies within the range of $50 million to $100 million and liabilities within $100 million to $500 million, according to a report published in BBC.

Ziff Davis has expressed interest over Gawker titles like Jezebel and Gizmodo through a statement. But no interest has been observed for gawker.com, flagship of the media house where the sex video of Hogan has got published in 2012.

The purchase proposal from Ziff Davis needs to be approved by the court to which the bankruptcy protection has been sought. However, the court will arrange an auction in search of higher bids surpassing the quotation made by Ziff Davis, reports CNN Money.

The auction proceeds are generally used to pay off debts. Plaintiff usually receives a part of the owed amount from the bankrupt company. Hogan has every intention to pursue in implementing the judgment whether in the bankruptcy court or elsewhere, informs David Houston, longtime attorney for Hogan.

The news of bankruptcy filing has appeared as a deep shock to the employees of Gawker’s Manhattan headquarters on June 10. Staffers have been informed of the filing through an all-hands meeting during noon just prior to the news has gone public.

The legal war enduring a decade with a vindictive billionaire has made the Gawker staffers resilient to receive the worst possible news. However, the Gawker workforce has continued blogging keeping heads down, informs John Cook, executive editor for Gawker media. The blogging network president, Heather Dietrick along with entrepreneur Nick Denton has been working to find a caring buyer for Gawker.