NEW YORK – Gawker is filing for bankruptcy protection and will sell itself rather than pay $140 million to pro wrestler Hulk Hogan.
The company says it plans to sell itself to publishing company Ziff Davis.
Gawker filed for Chapter 11 bankruptcy protection, about three months after Hogan won a lawsuit against the online gossip and news publisher. The sale will be conducted through bankruptcy court so other bidders could emerge.
The New York company said in the filing that it has as much as $500 million in debt and up to $100 million in assets.
Hogan sued Gawker after it posted a video of him having sex with a friend’s wife. Hogan was awarded $115 million in compensatory damages plus an added $25.1 million in punitive damages.
