Faced with a $140 million legal judgment in the invasion-of-privacy lawsuit brought against it by the former wrestler Hulk Hogan, Gawker Media is filing for bankruptcy.
The company is putting itself up for sale and filed for Chapter 11 bankruptcy on Friday, according to The New York Times.
Gawker decided to file for bankruptcy after the judge overseeing the suit against the company entered the full judgment and denied Gawker’s request for a stay under terms the company could meet.
The company is planning to sell itself to the highest bidder.
ZiffDavis, a digital media company, has submitted an opening bid of $90 million to $100 million, The New York Times is reporting.
The company found it necessary to file for bankruptcy to protect jobs and ensure that it could continue operations.
The sale of the company arrives just weeks after it was revealed that Silicon Valley billionaire Peter Thiel financially supported Hogan’s lawsuit.
With the sale approaching Gawker Media says it still plans to appeal the lawsuit, sources close to the company say.
Terry G. Bollea sued Gawker Media in 2012 over the publication of a black-and-white sex tape that showed Mr. Bollea having sex with the wife of a friend of his at the time.
A Flordia jury awarded Hulk Hogan $115 million in damages and a jury added another $25 million in punitive damages.
Columbus Nova Technology Partners acquired a minority stake in the company in January.