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:

2 PHOTOS
Hulk Hogan sex tape lawsuit
See Gallery
Hulk Hogan sex tape lawsuit
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)
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

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

Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside
Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts
If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic