Moments ago the financially challenged tabloid nemesis of Peter Thiel, Nick Denton’s Gawker Media, filed for bankrutpcy – an outcome predicted by many as inevitable – listing assets between $50 and $100 million, and liabilities between $100 and $500 million.
No matter on which side of the Thiel-Denton debate one sides, we doubt many tears will be shed as yet another chapter in “new media” comes to a close.
The WSJ adds that the company will be put for sale in bankruptcy auction, which will begin with an opening bid of $100 million from the digital media company and publisher Ziff Davis LLC, according to a person familiar with the matter. The sale was triggered after the judge overseeing the invasion-of-privacy case brought by Hulk Hogan—whose real name is Terry Bollea—declined to issue a stay pending Gawker’s appeal. That required the company to put up a $50 million bond.
Why is the company filing now? Simple: to make Hulk Hogan’s aka Terry Bollea’s $130 million claim part of the prepetition, unsecured liabiltiies.
“Whatcha gonna do when Chapter 11 runs wild on you”
Proceeds from a sale will go into a fund to finance further litigation costs and cover whatever damages may ultimately be leveled following the appeals process, which could take years to resolve. Gawker has said that it expects to ultimately prevail.
Whatever money is left at the end of the legal process will go to Nick Denton, Gawker’s founder who owns most of the company, and other shareholders. Earlier this year, Columbus Nova Technology Partners took an undisclosed minority stake in the media company as it shored up its books for the trial.
Full filing below:
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