Following the news Friday that Gawker has filed for Chapter 11 bankruptcy protection, the media company announced that it will be sold to Ziff Davis or the highest bidder.
The Wrap noted that Gawker Media Group is selling off its brands and has an agreement in place with Ziff Davis. Other prospective buyers, however, could get into a bidding war as the sale of the New York-based company will be done via bankruptcy court auction.
“We are encouraged by the agreement with Ziff Davis, one of the most rigorously managed and profitable companies in digital media,” said Gawker founder Nick Denton. “A combination would marry Ziff Davis’ strength in e-commerce, licensing and video with GMG’s premium media brands.”
Gawker’s bankruptcy filing was triggered after the group was ordered to pay Terry Bollea a.k.a Hulk Hogan over $100 million. The company’s assets are listed to be between $50 million and $100 million, while its liabilities are between $100 million and $500 million. Gawker is appealing the Hogan verdict.