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Gawker Files Chapter 11 Bankruptcy


straycat19

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Gawker Media filed for Chapter 11 bankruptcy on Friday ahead of a planned sale to media company Ziff Davis, according to a press release.

The move comes after a Florida judge ruled in March that the gossip website should pay $140 million to Hulk Hogan for posting a clip of a sex tape the wrestling legend said he had no idea was being filmed.

The website stated in its bankruptcy filing that it intends to begin “marketing and selling assets of the company.”

According to the court documents, Gawker has between 200 and 1,000 creditors.

Gawker Media includes websites like Gawker.com, Jezebel.com and Deadspin.com. The company was founded by Nick Denton.

Denton said in a statement, “We are encouraged by the agreement with Ziff Davis, one of the most rigorously managed and profitable companies in digital media. A combination would marry Ziff Davis’ strength in e-commerce, licensing and video with [Gawker Media Group’s] premium media brands.”

In May, a judge denied Gawker's motion for a new trial in the Hogan case. A press release from Gawker states the reason behind the sale and bankruptcy filing is to give Gawker money to fund an appeal of the Hogan verdict and to preserve jobs.

 

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