Gawker is being sold to Univision for $135 million

Before you go, we thought you'd like these...
Before you go close icon

Gawker Sold to Univision for $135 Million After Bankruptcy



Univision will buy Gawker Media for $135 million, Gawker confirmed to Business Insider, as first reported by Recode's Peter Kafka on Tuesday.

"I am pleased that our employees are protected and will continue their work under new ownership — disentangled from the legal campaign against the company," Gawker founder Nick Denton said in a statement. "We could not have picked an acquirer more devoted to vibrant journalism."

SEE ALSO: The best selling books on Amazon of 2016 so far

Univision's purchase of bankrupt Gawker follows a two-way bidding battle between Univision and Ziff Davis, which originally opened the auction with a bid of $90 million. Univision and Ziff Davis were the only two companies that put in a bid for Gawker, according to The New York Post. That is far less than the 40 potential buyers an investment banker representing Gawker planned to market the company to, Reuters reports.

Even though Univision has the winning bid, Kafka reports that the purchase "won't be official for a bit." The Univision deal will require approval from a US bankruptcy court judge.

It will also be interesting to see how Gawker fits into Univision, whose new media enterprise Fusion Gawker has ruthlessly taunted for its low traffic.

The sale to Univision doesn't mean Gawker's appeals process on the $140 million verdict won by Hulk Hogan will stop, however. Denton, who was forced to file personal bankruptcy because of the case, has been vocal about Gawker's plans to appeal (using the funds set aside from the sale).

Gawker Media

In June, Gawker Media filed for Chapter 11 in a move that allowed Gawker to avoid having its assets seized while it continued to appeal the verdict.

"Even with his billions, Thiel will not silence our writers," Denton said in a tweet at the time. "Our sites will thrive — under new ownership — and we'll win in court."

WATCH: Why Denton said filing for bankruptcy was 'inevitable'

Gawker's Denton speaks out

Gawker has since continued to publish, pay its staff, and appeal the verdict.

The money Gawker gets from the auction will go into a fund that will be used for future legal costs and any eventual damages, according to The Journal. If any money is left after the litigation concludes (i.e., if Gawker wins), it will go to Denton as well as Gawker's investors.

The case

Hogan, whose real name is Terry Bollea, was awarded $140 million in damages in March stemming from a Gawker news article published in 2012 that included a clip of him having sex.

See photos from the case:

22 PHOTOS
Hulk Hogan sex tape lawsuit
See Gallery
Hulk Hogan sex tape lawsuit
Hulk Hogan sits in court before the start of his trial Thursday, March 17, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker Media for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (Dirk Shadd/The Tampa Bay Times via AP, Pool)
Former professional wrestler Hulk Hogan, left, along with attorney Seema Ghatnekar prepare to take a break just after the jury was handed Hogan's case against Gawker Media for deliberations on Friday, March 18, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, is suing Gawker for $100 million for posting a video of him having sex with his former best friend's wife. Hogan contends the 2012 post violated his privacy. (Boyzell Hosey/The Tampa Bay Times via AP, Pool)
Gawker attorney Michael Sullivan addresses the jury during his closing statements in the trial of former professional wrester Hulk Hogan's lawsuit against Gawker media, in St. Petersburg, Fla. on Friday, March 18, 2016. Hogan, whose given name is Terry Bollea, is suing Gawker for $100 million for posting a video of him having sex with his former best friend's wife. Hogan contends the 2012 post violated his privacy. (Boyzell Hosey/The Tampa Bay Times via AP, Pool)
Hulk Hogan talks with his attorneys before the start of his trial Thursday, March 17, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker Media for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (Dirk Shadd/The Tampa Bay Times via AP, Pool)
Judge Pamela A. M. Campbell raises her hand to swear in the jury during the Hulk Hogan's trial Thursday, March 17, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker Media for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (Dirk Shadd/The Tampa Bay Times via AP, Pool)
Hulk Hogan talks with his attorneys before his trial Thursday, March 17, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker Media for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (Dirk Shadd/The Tampa Bay Times via AP, Pool) MANDATORY CREDIT
Hulk Hogan, whose given name is Terry Bollea, testifies in court on Tuesday, March 8, 2016, during his trial against Gawker Media, in St Petersburg, Fla. Hogan and his attorneys are suing Gawker for $100 million, saying that his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape filmed of Hogan and his then-best friendâs wife. (John Pendygraft/Tampa Bay Times via AP, Pool) MANDATORY NY POST OUT
Former Gawker employee A.J. Daulerio, right, testifies at the Pinellas County Courthouse in St. Petersburg, Fla., Monday, March 14, 2016. Hulk Hogan is suing Gawker Media for $100 million for posting an edited video showing him having sex with his then-best friend's wife. Lawyers for Gawker Media began presenting their case on Monday. (Stephen Yang/New York Post via AP, Pool)
Gawker Media founder Nick Denton, left, and reporter A.J. Daulerio, right, sit inside a Pinellas County courtroom, Monday, March 14, 2016, in St Petersburg, Fla. Hulk Hogan, whose real name is Terry Bollea, is suing Gawker Media for the publication of a sex tape involving the former wrestler. Lawyers for Gawker Media began presenting their client's case on Monday. (Stephen Yang/New York Post via AP, Pool)
University of Florida journalism professor Mike Foley testifies during Hulk Hogan's trial against Gawker Media Wednesday, March 9, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NY POST OUT
Hulk Hogan, whose given name is Terry Bollea, waits in the courtroom during a break Wednesday, March 9. 2016, in his trial against Gawker Media in St. Petersburg, Fla. Hogan and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NY POST OUT
Gawker Media reporter A.J. Daulerio attends Hulk Hogan's trial against Gawker Wednesday, March 9, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NY POST OUT
Gawker Media founder Nick Denton attends Hulk Hogan's trial against Gawker Wednesday, March 9, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NY POST OUT
Hulk Hogan, whose given name is Terry Bollea, leaves the courtroom during a break Wednesday, March 9. 2016, in his trial against Gawker Media in St. Petersburg, Fla. Hogan and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NEW YORK POST OUT
Pinellas County Judge Pamella Campbell, second right, meets with attorneys at the bench Wednesday, March 9. 2016, during Hulk Hogan's lawsuit trial against Gawker Media in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NEW YORK POST OUT
Gawker Media's Nick Denton, left, and A.J. Daulerio, right, listens to testimony during Hulk Hogan's lawsuit trial against Gawker Wednesday, March 9, 2016, in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NEW YORK POST OUT
Hulk Hogan, whose given name is Terry Bollea, takes a moment as attorneys talk to the judge in court on Tuesday, March 8, 2016, during his trial against Gawker Media, in St Petersburg, Fl. Hogan and his attorneys are suing Gawker for $100 million, saying that his privacy was violated, and he suffered emotional distress after Gawker posted one minute and forty one seconds of a sex tape filmed of Hogan and his then-best friendâs wife. (John Pendygraft/Tampa Bay Times via AP, Pool) MANDATORY NY POST OUT
David Houston, an attorney for Hulk Hogan, testifies Wednesday, March 9, 2016, in Hogan's trial against Gawker Media in St. Petersburg, Fla. Hogan, whose given name is Terry Bollea, and his attorneys are suing Gawker for $100 million, saying his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape of Hogan and his then-best friend's wife. (AP Photo/Steve Nesius, Pool) MANDATORY NEW YORK POST OUT
FILE -In this Tuesday, March 1, 2016 file photo, Terry Bollea, known as professional wrestler Hulk Hogan, watches potential jurors at the Pinellas County Courthouse, in St. Petersburg, Fla., as jury selection began in his case vs. Gawker Media. Opening statements are scheduled to begin Monday, March 7, 2016, in the civil trial between pro wrestler Hulk Hogan and a popular news website. (Scott Keeler/The Tampa Bay Times via AP, Pool, File)
Judge Pamela Campbell listens during a sidebar as Hulk Hogan, whose given name is Terry Bollea, testifies in court on Tuesday, March 8, 2016 during Hogan's trial against Gawker Media, in St Petersburg, Fla. Hogan and his attorneys are suing Gawker for $100 million, saying that his privacy was violated, and he suffered emotional distress after Gawker posted a sex tape filmed of Hogan and his then-best friendâs wife. (John Pendygraft/Tampa Bay Times via AP, Pool) MANDATORY NY POST OUT
ST PETERSBURG, FL - MARCH 07: Terry Bollea, aka Hulk Hogan, testifies in his case against the website Gawker at the Pinellas County Courthouse March 7, 2016 in St. Petersburg, Florida. Bollea is taking legal action against Gawker in a USD 100 million lawsuit for releasing a video of him having sex with his best friends wife. (Photo by Boyzell Hosey-Pool/Getty Images)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

It was revealed in late May that billionaire Silicon Valley investor Peter Thiel had secretly financed the lawsuit and others against Gawker Media to try to put the website out of business.

"I saw Gawker pioneer a unique and incredibly damaging way of getting attention by bullying people even when there was no connection with the public interest," Thiel, whom Gawker reportedly outed as gay in 2007, told The New York Times.

More on Thiel's New York Times op-ed ahead of the Gawker sale
Peter Thiel Pens Scathing Op-Ed Ahead of Gawker Sale

Gawker Media was handed a legal loss in May when a judge in Florida denied Gawker's motion for a new trial. That meant the damages would not be reduced. The judge also denied Gawker's request for a stay.

NOW WATCH: It's going to be a bad year for the iPhone — here's why

See Also:

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners