Gawker Media LLC is putting itself up for sale as it filed for Chapter 11 bankruptcy protection on Friday, citing a $140 million lawsuit against former wrestler Hulk Hogan as its biggest creditor. Gawker owns websites Lifehacker, Gizmodo, and Jezebel.
The bankruptcy filing revealed that the media company’s assets were estimated from $50 million to $100 million while its liabilities amounted from $100 million to $500 million. The company was largely affected by a US court’s decision in favor of Hulk Hogan that required Gawker to pay $140 million for publishing the wrestler’s sex tape.
Insiders said that Ziff Davis LLC, owner of IGN, AskMen, and PC Magazine, is up to purchase Gawker for almost $100 million. A bankruptcy auction is expected at the end of July. Lack of better bids will make Ziff Davis the new owner of the embattled media company.
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