One of the Internet’s most vile publications is finally about to his the dust.
Gawker media, known for it’s portfolio of liberal rags including Jezebel, Deadspin, Kotaku, and of course “Gawker.”
Gawker.com was the most well known site in their portfolio, and the most controversial. Among their prior controversies include outing PayPal co-founder Peter Thiel as homosexual back in 2007, publishing a false story accusing the CFO of Conde Nast of soliciting a gay prostitute, and releasing Hulk Hogan’s sex tape.
It was the final that ended up costing them the company.
Gawker Media LLC, the online publisher ordered by a U.S. court to pay former professional wrestler Hulk Hogan $140 million over the publication of a sex tape, filed for Chapter 11 bankruptcy on Friday and plans to sell itself at auction.
The move will intensify public debate in the United States over the role of big money in media lawsuits. Billionaire investor Peter Thiel, an early backer of Facebook (FB.O) and a co-founder of PayPal (PYPL.O) had bankrolled Hogan’s lawsuit.
Media company Ziff Davis LLC already has an agreement to buy Gawker for a little less than $100 million, according to people familiar with the matter. However, a bankruptcy auction will ensue, likely at the end of July. If no other bidders step up with better offers, Ziff Davis will become Gawker’s new owner.
Founder Nick Denton got personally screwed by the lawsuit too.
Denton has 45 million shares, representing about a 30 percent stake in the company, said Michael Berry, an attorney for Gawker. He had to sell shares to fund legal expenses to fight Hogan’s lawsuit, Berry said.
Take some time to celebrate Gawker’s demise – I’m sure they would celebrate ours!
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