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Gawker founder files for bankruptcy

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National

Gawker founder files for bankruptcy

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COMING UP:Gawker founder files for bankruptcy

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00:00:00
>> Gawker founder Nick Denton, filing for personal bankruptcy Monday after losing his last appeal to keep Hulk Hogan from seizing his assets. The gossip website's founder tweeting he wanted to protect his company from a vendetta by billionaire Peter Thiel, who'd funded a lawsuit brought by the former pro wrestler.
00:00:16
Reuters' bankruptcy correspondent, Jessica DiNapoli.>> Once you file for bankruptcy, there's an automatic stay that you receive that basically shields you from judgments and litigation that you may have faced before you filed for bankruptcy. In Nick Denton's case, he wanted these protections without having to file for bankruptcy.
00:00:39
An argument that he made was that if he filed for bankruptcy, he would be too tied up in this personal affair to help Gawker get sold and get the highest price.>> In March a Florida jury found Gawker violated Hogan's privacy by posting a sex tape of him online and awarded the ex-reality star $140 million.
00:01:01
According to court documents, Denton is personally liable for For 125 million of that amount. A few months after the judgment, Thiel an early investor in Facebook and a cofounder of PayPal admitted he'd been waging a war against Gawker, which had publicly revealed he was gay in 2007. And that he secretly put up $10 million of his own money to finance Hogan's suit.
00:01:23
Gawker Media, which also operates websites Jezebel and Gizmodo, filed for bankruptcy in June. The company plans to sell it's assets in a court supervised auction later this summer.