Peter Thiel may be able to buy Gawker Media as well as put it out of business.
The online news organization filed for Chapter 11 bankruptcy Friday after a Florida judge upheld a $140 million judgment against them. Former pro-wrestler Hulk Hogan sued Gawker after it published a clip from a Hogan sex tape along with an “analysis.” Gawker lost and had been appealing the massive judgment, asking the judge to give them more time before forcing them to pay up. On Friday morning, the judge declined their motion. Gawker appears to have filed bankruptcy paperwork almost immediately.
The company will be sold at auction and has hired an investment bank to help it navigate a swamp of creditors looking to cash in. Although the company is reportedly worth around $100 million (one investor, Ziff Davis, is looking to start the bidding there), it owes more than that just to Hulk Hogan. Indeed, potential acquirers will probably want to see how the legal judgment plays out before they decide on their final bids.
Gawker owes about $22 million in loans and credit to various investors and banks, and several hundred thousand to lawyers and strategists helping on the privacy case. All told, it’s estimated Gawker could owe between $100 million and $500 million.
