Updated on June 10 at 2:57 p.m. ET
Gawker Media, reeling from the $140 million awarded to former pro-wrestler Hulk Hogan in an invasion-of-privacy suit, has filed for Chapter 11 bankruptcy, and said it’s being sold to Ziff Davis, the media company that owns PC Magazine and other publications.
“We are encouraged by the agreement with Ziff Davis, one of the most rigorously managed and profitable companies in digital media,” Nick Denton, Gawker Media Group’s (GMG) founder, said in a statement. “A combination would marry Ziff Davis’ strength in e-commerce, licensing and video with GMG’s premium media brands.”
In order to offer the business free and clear of legal liabilities and maximize value for all stakeholders, GMG subsidiary GM LLC has filed for Chapter 11 protection from creditors. The sale will be conducted through a bankruptcy court supervised auction, in which other bidders may offer a higher price for the company. GMG is being advised by Mark Patricof of Houlihan Lokey.
During the sale process, GMG will maintain normal operations, publishing news and opinion on technology, politics and other interests to its 6 million readers each weekday, and providing advertisers with access to this desirable audience.
The statement said the sale and the bankruptcy filing will allow Gawker Media to appeal the judgment in the Hogan case. Here’s a screen grab of Gawker’s filing:
Gawker petition grab pic.twitter.com/I1SrCqcguA— Max Frumes (@maxfrumes) June 10, 2016
The New York Times reported earlier, citing a person briefed on the plan, that ZiffDavis submitted an opening bid of $90 million to $100 million for Gawker Media.