We can't say we're surprised.
On Friday, it was revealed that Gawker Media has filed for Chapter 11 bankruptcy following their devastating loss against Hulk Hogan in his invasion-of-privacy lawsuit. Oh man.
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As you may recall, the wrestler was awarded $140 million dollars from a Florida judge after he sued the media site for releasing snippets from his sex tape. The company, founded by Nick Denton, claims they only have $100 million in assets while their legal drama is costing them hundreds of millions.
In case you forgot, billionaire Peter Thiel recently revealed he has been helping others wage war against Denton's company because Gawker's tech blog outed him in the past. In addition to Hogan's suit, Thiel has his hands in defamation claims from a journalist and the alleged inventor of e-mail. Oh, and the website is facing off again DailyMail over a copyright issue. Tsk, tsk!
Thankfully, Gawker Media has hired the investment bank Houlihan Lokey to help them in the restructuring process and potential sale of the business. Not to mention, bankruptcy papers show that Gawker has scored a loan from the Silicon Valley Bank worth $7.66 million, with an additional line of credit of over $5 million.
Wait, there's more as they've also secured a $15 million credit agreement from the US VC Partners. It'll certainly be inneresting to see if Nick and co. will be able to hold onto all of this cash as they try to fight paying Hogan in the appeal stage of their complicated case.
What do U think about all this, Perezcious readers? SOUND OFF in the comments!
[Image via Getty Images.]
Tags: business blitz, gawker, hulk hogan, legal matters, nick denton, peter thiel