NEW YORK, June 10 (UPI) — Entertainment media company Gawker announced Friday it has filed for bankruptcy and will be put up for sale due to a $140 million civil judgment awarded to wrestler Hulk Hogan earlier this year.
New York-based Gawker detailed the move on its website Friday, saying the media company can continue operations but only if it is taken over by another owner.
“The filing is not expected to affect Gawker Media’s normal editorial or business operations for the foreseeable future,” Gawker wrote on its website. “However, it is the most significant change to Gawker’s corporate structure in its 14-year history.”
Hogan’s suit claimed Gawker had posted a video online showing the wrestler engaged in sexual activity with the wife of a Florida radio disc jockey.
The jury agreed and awarded $140 million to Hogan, an award that has been upheld in the appellate process, the Wall Street Journal reported Friday. The company is only worth $83 million, according to testimony given at the civil trial
As a result, the company said on Friday that it’s filed for Chapter 11 bankruptcy protection.
“The bankruptcy process will involve an auction of the company, including its seven main media brands,” Gawker stated.
“What a beautiful day, and the good doesn’t prevent the better!” Hogan tweeted Friday. “In the present I AM always grateful, only good happens to me.”
Hogan’s attorney said he will seek every penny of the $140 million from Gawker, which specializes in entertainment and celebrity-driven news. The company has been criticized in the past for its aggressive and tabloid-style reporting.
“We have every intention to continue to pursue our judgement against Gawker and to hold them accountable,” attorney David Houston said.
Earlier this month, it was reported that billionaire investor Peter Thiel had financed Hogan’s litigation against Gawker.
Nick Denton, who co-founded the company in 2002, responded Friday with disappointment in the judge’s decision.
What a beautiful day,and the good doesn’t prevent the better! In the present I AM always grateful,only good happens to me. HH— Hulk Hogan (@HulkHogan) June 10, 2016
“Authentic writing, whether it takes the form of honest reviews of technology, video games and entertainment, or revelations about the way the system works, is more important than ever,” he said. “We have been forced by this litigation to give up our longstanding independence, but our writers remain committed to telling the true stories that underpin credibility with our millions of readers.”
“Even with his billions, Thiel will not silence our writers,” he added in a tweet Friday. “Our sites will thrive — under new ownership — and we’ll win in court.”
The bankruptcy filing also seeks to prevent Hogan from going after Denton’s personal wealth and assets. The Wall Street Journal says the CEO has a personal worth of about $120 million.
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