gawker media files bankruptcy cnbc twitter

Gawker Media Files Bankruptcy: What It Means for the Company and Its Founder

In a shocking move, Gawker Media, the popular online publisher behind websites like Gawker, Deadspin, and Jezebel, filed for Chapter 11 bankruptcy protection in June. The company is seeking to restructure its debts and sell itself through an auction process. However, this move has raised concerns about the potential distractions it could cause for the company's founder, Nick Denton.

As reported by CNBC, Denton told the court that he knows other potential bidders for Gawker will want to speak with him, but he is worried that his personal bankruptcy process would be a major distraction. He believes that he would need to focus on his own financial affairs rather than helping navigate Gawker through its auction.

Prior to filing for bankruptcy, Gawker had reached an agreement with online publisher Ziff Davis to buy the company for $90 million. However, this deal was only meant to be a stalking horse bid, setting the floor price in an auction process that is now underway. The company and its investment bankers are currently soliciting acquisition offers from other potential buyers.

If the sale of Gawker does not go through, the company's business and plan to sell itself in bankruptcy would suffer, according to its attorneys. In a court filing, they argued that Denton would be too distracted by his own personal bankruptcy process to effectively guide the company through this difficult time.

The court had previously granted Denton temporary protections from lawsuits, but Judge Stuart Bernstein declined on Tuesday to extend the shield. Gawker's attorneys had asked for the same protections for their founder, citing concerns about the potential distractions he would face if he were not shielded from lawsuits.

Gawker's filing for bankruptcy was prompted by a $140 million judgment against the company in favor of professional wrestler Hulk Hogan (whose real name is Terry Bollea). The judgment was the result of a lawsuit filed after Gawker published excerpts from a sex tape featuring Hogan and Heather Cole, his then-wife. Denton is personally liable for $125 million of the judgment, according to court filings.

The future of Gawker Media remains uncertain as it navigates this difficult period. Will the company be able to find a buyer and restructure its debts? Only time will tell.

Gawker media files bankruptcy cnbc twitter