Who are the Potential New Owners of Gawker Media?

by San Antonio Attorney

Ziff Davis, a well known multimedia company, submitted a ‘stalking horse’ bid of approximately $100 million last June. This occurred after Gawker filed for bankruptcy, but Ziff Davis is not the only one to express interest in the purchase of Gawker. Almost 12 to 24 companies have placed their cards in investing in the recently bankruptcy company, according to the New York Times.

Among the interest bidders include Vox Media, New York Magazine, Penske Media and Univision.

Nick Denton, Gawker CEO, seemed to be sold out by Ziff Davis’ willingness to buy the company. But as stipulated by rules, whoever wins the bid will earn the acquisition of Gawker Media.

Gawker Media has been a lucrative website, as it generates huge revenue due its high readership demographic.

Denton revealed through a blog post, which was published last Monday that they have always prioritized credibility over commercial revenue. This was dubbed as the Gawker tax of their income on advertisements.

What will be Gawker’s fate after the auction ends? The new proprietor will have complete possession of its assets and the total amount paid for the auction will be directed to an escrow account until the final verdict can be reached in the case filed by Hulk Hogan.

If Gawker loses the cases, all proceeds from the auction will go to Hogan. If Gawker receives a reduced judgment, some of the money will go to Denton and its investors.

As of Thursday, Gawker announced its closure by next week. This decision was immediately done as Univision’s bid led them to successfully acquire $135 million for the six auxiliary sites owned by Gawker media. Gawker’s shutdown occurred three months after rumors surfaced that Peter Thiel, a Silicon Valley billionaire, was involved in a legal campaign against the website.

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