close_game
close_game

Gawker files for bankruptcy after losing $140mn lawsuit to Hulk Hogan

ByAP, New York
Jun 11, 2016 01:21 AM IST

Gawker filed for Chapter 11 bankruptcy protection, about three months after Hogan won a lawsuit against the online gossip and news publisher.

Gawker is filing for bankruptcy protection and plans to sell itself to publishing company Ziff Davis rather than pay $140 million to pro wrestler Hulk Hogan.

People walk past a building that lists offices for Gawker Media in New York City, US on Friday.(Reuters)
People walk past a building that lists offices for Gawker Media in New York City, US on Friday.(Reuters)

Gawker filed for Chapter 11 bankruptcy protection, about three months after Hogan won a lawsuit against the online gossip and news publisher. The sale will be conducted through bankruptcy court so other bidders could emerge.

The New York company said in the filing that it has as much as $500 million in debt and up to $100 million in assets.

Hogan sued Gawker after it posted a video of him having sex with a friend’s wife. Hogan was awarded $115 million in compensatory damages plus an added $25.1 million in punitive damages.

Read | Gawker privacy lawsuit evolves into battle of tech billionaires

It was later revealed that billionaire tech investor Peter Thiel had been secretly funding Hogan’s lawsuit. Thiel, who co-founded PayPal and was an early investor in Facebook, has been a frequent target of Gawker writers, who have written unflattering pieces about Thiel’s political beliefs and utopian goals.

One 2007 post outed Thiel as gay. Another Gawker site, Valleywag, ran a number of stories skewering Facebook, which provided a big chunk of Thiel’s estimated $2.7 billion fortune.

A spokesperson for Thiel said he had no comment on Friday.

Read | Most shocking celebrity sex tapes after Hulk Hogan wins $115 mn suit

In the filing, Hogan, whose real name is Terry Bollea, was listed as Gawker’s biggest creditor.

Gawker founder Nick Denton said in a statement that Ziff Davis’ e-commerce, licensing and video assets would be a good fit with Gawker’s websites, which include tech site Gizmodo, sports site Deadpsin, video-game site Kotaku, celebrity and women-focused site Jezebel, news and gossip site Gawker, car-site Jalopnik and self-help site Lifehacker.

Read breaking news, latest...
See more
Read breaking news, latest updates from US, UK, Pakistan and other countries across the world on topics related to US Election, politics,crime, along with national affairs.
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, October 04, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On