Gawker Media LLC, pioneer in on-line publishing finally put itself on sale after going bankrupt against a law suit filed by former professional wrestler Hulk Hogan. The company face bankruptcy after $140 millions court judgement regarding a sex tape involving the world renowned wrestler.
The move was ascertained that the lawsuit filed by Hogan including several others were being bankrolled by Peter Thiel, an early backer of Facebook and a co-founder of PayPal. As being a noted billionaire investor the revelations left the court a bit obvious in decision making. The actual facts came out as revelations when situation got misleaded among media circle.Thiel’s involvement, which stemmed from his ire over Gawker’s writings about him and his friends in Silicon Valley, raised alarm bells in U.S. media circles over the prospect of wealthy individuals using the courts to muzzle the press, as stated in Reuters.
Gawker and Co. took to Twitter revealing and taking vow to continue its operations of 7 other websites despite of the bankruptcy. Media company Ziff Davis LLC has proposed a willingness to acquire Gawker Media’s assets for less than 100 million USD. The auction procedure might take place by the end of July which will include only the initial bidding as per advised by the special court.
According to Founder and CEO of Gawker, Even with his billions, Thiel will not silence our writers,” Gawker founder and Chief Executive Nick Denton said on Twitter. Our sites will thrive — under new ownership — and we’ll win in court.
The matter was taken in hands when the publishing media house made a 1 minute, 41 seconds video in which Hogan was seen having sex with his then-best friend’s wife which seemed as an edited form. A very much infuriated pro wrestler filed a lawsuit. The accused includedGawker, Denton and former Gawker editor A.J. Daulerio, as they tried to violate his privacy. Later, in March, a six-member jury panelawarded $60 million to Hogan, for emotional distress and $55 million for economic damages. The jury then added another $25 million as of punitive damages.
As of now, Gawker has challenged the verdict where most of the legal experts have revealed that the company will face rejection. On the other hand, experts say that the media company might have a good chance of reducing the award penalty or even thrown out. The former quoting stood out as at a post-trial hearing, Gawker mentioned that he possessed mere 5.3 million USD in cash in hand and faced massive legal boundations. The trial took place on Friday, at St. Petersburg, Florida.
The judge agreed on to postpone payments worth 140 million USDwhile Gawker pursued its appeal, but required the defendants to put up their shares of the company as collateral to be held by Hogan’s lawyers.On this matter, Gawker objected so as to holding collateral and proposed varied arrangements, on which the judge rejected. Thus, putting the company on sale was sole option left.