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On Friday, Gawker, the embattled media business said it agreed to sell all its seven brands as well as other assets to Ziff Davis the tech publisher.
The bid by Ziff Davis is worth between $90 million and $100 million, said sources, and set the floor for the process of the bankruptcy auction.
The bankruptcy Chapter 1 filing this week in Manhattan was due to the tough legal fight the company had with former wrestler Hulk Hogan.
Hogan’s court battle was funded secretly by Peter Thiel a billionaire from Silicon Valley. A Thiel spokesperson did not comment on Friday when the news was released.
Gawker CEO and founder Nick Denton said online that even with the billions he had, Thiel would not silence the writers of the site, as the world thrives on controversy.
Hogan, whose real name happens to be Terry Bollea, twitted to the millions of his fans, how pleased he was of the news that Gawker filed bankruptcy.
It is expected that bidding will continue into next week.
Denton said he had been encouraged by what was in the agreement with Ziff Davis. He called the company Davis ran one of the most profitable and rigorously managed.
Davis signaled that he and his company are interested in the titles of Gawker Media such as Gizmodo and Jezebel, but the statement by the company noticeably lacked talk about the company’s flagship Gawker.com.
The agreement for the sale to Davis must be approved by the court, which will be conducting an auction to see whether there is a higher offer to be submitted.
Proceeds from this sale are going to pay creditors off, including Hogan.
However that does not mean the money just awarded to will ever be collected.
Under the bankruptcy, people owed large quantities for lawsuits are worried.
This past March, a jury in Florida awarded Hogan $140.1 million in his trial for the publishing of a sex tape of Hogan.
Gawker is pushing forward with an appeal of this recent judgment and maintained the company has every intention of pursuing a reversal of the judgment.
Staffers at Gawker’s headquarters on Friday learned about the bankruptcy during a meeting before noon.
Gawker Media executive editor John Cooke said that its staff would continue to move steadily forward while the bankruptcy is taken care of in court.