Gawker Media Files For Bankruptcy
June 10, 2016 at 12:20 PM (PT)
GAWKER MEDIA has filed for Chapter 11 bankruptcy in the wake of the upholding of the $140 million jury verdict in favor of HULK HOGAN against GAWKER, publisher NICK DENTON, and then-editor A.J. DAULERIO. The move, which follows the denial of GAWKER's request for a stay of the entering of the full judgement, is aimed at avoiding having to pay HOGAN immediately and will result in an auction of the company with an opening stalking-horse bid of $100 million from ZIFF-DAVIS. The site and its related sites will continue to operate while the sale process is in motion.
Shortly after filing the bankruptcy petition, GAWKER filed a pre-emptive lawsuit against HOGAN and several others with active lawsuits against the company, seeking an injunction to enjoin the suits and prevent any further action against DENTON without court approval while staying the other suits. HOGAN's co-defendants in the case, plaintiffs in other cases against GAWKER, attorney MEANITH HUON, who has appealed the dismissal of his defamation suit against GAWKER after he was acquitted of rape; freelance reporter ASHLEY TERRILL, who sued for allegedly breaking their promise to keep information she provided to them about TINDER's management; TERESA THOMAS, who sued for a story that alleged she was dating her boss at YAHOO!; SHIVA AYYADURAI, who GAWKER reported on for claiming he invented email; and Internet journalist CHARLES C. JOHNSON and his GOTNEWS.COM website, who sued GAWKER for defamation.
HOGAN won the case and the first appeals round in his suit against GAWKER over the now-infamous sex tape with BUBBA THE LOVE SPONGE's then-wife HEATHER CLEM. The case drew additional attention with reports that SILICON VALLEY billionaire PETER THIEL financed HOGAN's and others' suits against GAWKER MEDIA, possibly as revenge for the site's former VALLEYWAG subsidiary publicly outing him against his wishes in 2007 and for other reporting to which he objected.