With a judge ruling that the $140 million jury judgment against Gawker stands, the company announced this week that it is filling for bankruptcy and will be put up for auction, according to the Wall Street Journal. All of this is a result of the huge judgment Hulk Hogan received in his invasion of privacy lawsuit in March against the blog after Gawker posted a sex tape of the wrestling star. Gawker intends to continue to appeal the judgment, a process that could take years.
An opening bid for that auction has been declared by Ziff Davis LLC at $100 million. Gawker will stay in business through the transition thanks to a bankruptcy loan of $22 million. Listed on that loan is Hulk Hogan as the largest creditor.
Recently it was publicized that the legal fight of Hogan and others against Gawker was financed by billionaire investor Peter Thiel. Thiel is taking aim at the company for people he feels Gawker targeted unfairly.