Gawker files for bankruptcy protection, entertains buyers

Peter Kafka reports that Gawker's filed for bankruptcy protection to avoid paying Hulk Hogan the $140m judgment he won against it. Though legal experts believe the judgment will be much-reduced or overturned at appeal, the filing readies Gawker for the block. Ziff Davis, the tech publisher, is reportedly offering $90-$100m.

Gawker and its banker Mark Patricof assume that the company will eventually see higher bids while it is in bankruptcy protection. Last year, in advance of the Hogan trial, Denton figured his company was worth something in the $250 million to $300 million range.

But in any case the company won't trade hands until Gawker either beats back Thiel and Hogan or it finishes a court-approved restructuring. Because no one wants to buy an ongoing lawsuit from Peter Thiel.

Ziff Davis itself is a company that has gone through the Chapter 11 process. The company was once a dominant force in the trade and hobbyist magazine business, but its fortunes declined along with the print industry, and it filed for bankruptcy protection in 2008.

It emerged in recent weeks that billionaire Peter Thiel funded Hogan's lawsuit, exacting long-awaited revenge for Gawker having outed him as gay in 2007.