Gawker Media Forced Into Bankruptcy After Hulk Hogan Lawsuit
Gawker Media has been forced into bankruptcy, following Hulk Hogan's $140 million judgement in his invasion of privacy lawsuit.
The company filed for Chapter 11 bankruptcy protection in June, after losing the lawsuit to Hogan, who sued the company for leaking a private sex tape he was featured in.
It was not only a victory for Hogan, but also billionaire investor Peter Thiel, who helped fund Hogan's lawsuit... because he held a grudge against the publication for outing him as day in a 2007 article.
Gawker reported overall revenue of 7-8 percent above last year, when they lost money, but has a "small operating profit in the first half" of 2016, according to Gawker Media founder Nick Denton.
Furthermore, Denton himself is facing personal bankruptcy, reports Reuters, after a U.S. judge refused to extend protections shielding him from liabilities resulting from a lawsuit this week.
"This story will conclude with Gawker Media's popular brands sheltered under new ownership and the importance of a free and critical press reaffirmed by the courts. In the end, the Facebook board member will have nothing to show for his petty grudge other than legal expenses and a reputation for thin skin," Denton said in a statement.