Gawker Files for Bankruptcy, Will Be Put Up for Auction
Move comes after $140 million Hogan judgment is ruled to stand; auction to begin with $100 million bid from publisher Ziff Davis
http://www.wsj.com/articles/gawker-declaring-bankruptcy-will-be-put-up-for-auction-1465578030?mod=e2fb By Lukas I. Alpert Updated June 10, 2016 1:14 p.m. ET
Gawker Media filed for bankruptcy Friday and the company will be put up for auction after a judge ruled that a $140 million jury judgment against it in a costly legal battle with former professional wrestler Hulk Hogan would stand.
The sale auction will begin with an opening bid of $100 million from the digital media company and publisher Ziff Davis LLC, according to a person familiar with the matter.
The sale was triggered after the judge overseeing the invasion-of-privacy case brought by Hulk Hogan—whose real name is Terry Bollea—declined to issue a stay pending Gawker’s appeal. That required the company to put up a $50 million bond.
As a result, Gawker Media will declare bankruptcy in order to continue operating and paying its staff.
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