Executives at Gawker Media told employees today that the company has filed for Chapter 11 bankruptcy due to Silicon Valley billionaire Peter Thiel’s third-party funding of several lawsuits against the company. This plan will allow Gawker to continue functioning, but will require selling the company to another entity. The move came after the Hon. Pamela A.M. Campbell of Pinellas County, Florida denied Gawker’s request to stay the enforcement of a $50 million bond that would allow it to appeal the $140 million verdict that a 6-person jury awarded Hulk Hogan in March.
The filing is not expected to affect Gawker Media’s normal editorial or business operations for the foreseeable future.
Who could have seen this coming? That verdict of $140,000,000 was meant to put them out of business.