Hogan's attorney stated in court papers that the loan was for $200,000.ĭenton said in court that he has two assets: his equity in his apartment and his stock in Gawker, of which he owns about 30 per cent. Hogan's attorneys argued that Denton's personal bankruptcy would not weigh on Gawker because the company already had in place an executive team and outside professionals who would be able to execute the sale.ĭenton said that Gawker had loaned him money to pay for his personal bankruptcy attorney, and that he had met with the attorney twice. 'I know they are going to want to speak to me,' Denton said in court Tuesday of other potential bidders for Gawker. Prior to the ruling, Denton said a personal bankruptcy process would be major distraction to him as he helps navigate Gawker through its auction, arguing that he would be playing a crucial role. But this was only meant to be a stalking horse bid, setting the floor price in an auction process that is now underway. When Gawker filed for bankruptcy, it had an agreement from online publisher Ziff Davis LLC to buy the company for $90 million. Gawker and its investment bankers are now soliciting acquisition offers for the company. PT: Adds statement from Bollea's lawyer.Thiel did not immediately respond to a request for comment.Īttorneys for Gawker argued that without the shield, Denton would be distracted by his own personal bankruptcy process, harming Gawker's business and its plan to sell itself in bankruptcy. Bollea's privacy whether it be in the bankruptcy court or any other court."ĬNET's Rochelle Garner contributed to this report. Gawker said the sale would allow it to fund its appeal.īollea's lawyer, David Houston, said in a statement that the wrestler's camp has "every intention" to continue pursuing its judgement against Gawker and "to hold them accountable for violating Mr. And it isn't throwing in the towel against Bollea yet. In a statement announcing Ziff Davis's potential takeover, Denton called the bidder "one of the most rigorously managed and profitable companies in digital media."ĭuring the sale, Gawker Media will continue operating as normal, the company said. But Friday, a judge denied Gawker's request for a stay that would have let it continue to operate independently while appealing the jury verdict. A representative for Thiel declined to comment on the bankruptcy news.Ī week ago, Denton was optimistic about the company's prospects, saying he was "pretty confident" a higher court would rule in its favor or reduce the verdict on appeal. Thiel was one of the founders of PayPal and is a director of Facebook. Thiel, who was outed as gay by Gawker publication Valleywag in 2007, has said he is fighting a bully that has ruined people's lives. Bankruptcy protection will prevent Bollea from seizing Gawker's assets. In March, Bollea won a $140 million jury verdict against Gawker for publishing portions of a tape of him having sex with a friend's wife. Gawker's filing lists the pro wrestler, whose real name is Terry Bollea, as its biggest creditor. "We have been forced by this litigation to give up our long-standing independence, but our writers remain committed to telling the true stories that underpin credibility with our millions of readers," Gawker Media owner and founder Nick Denton said in an emailed statement. Nick Denton's Gawker Media will fund its appeal of a $140 million judgment against the company with its sale to Ziff Davis. With Gawker's filing for bankruptcy, the case raises questions about whether Thiel's campaign to undo Gawker will have a chilling effect on other publications. The headline-grabbing case pitted freedom of the press against a celebrity's right to privacy, but it grew knottier last month when Silicon Valley billionaire Peter Thiel confirmed he was bankrolling legal fees in the Hulk Hogan case. The bid by Ziff Davis, which owns PC Magazine, was said to be worth about $90 million to $100 million. The sale is being conducted through a court-supervised auction, which could see other bidders emerge to offer a higher price. Gawker filed for Chapter 11 bankruptcy in the Southern District of New York. There's no denying it anymore: Gawker Media's legal battle against wrestler Hulk Hogan has crippled the company, as it filed for bankruptcy protection and agreed to sell itself to fellow digital publisher Ziff Davis.
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