Skip to main content

Gawker files for chapter 11 bankruptcy; deal in place to sell company to Ziff Davis

gawker sale ziff davis hulk hogan jean jacket
Image used with permission by copyright holder
Gawker Media as we know it may soon be no more: The company filed for Chapter 11 bankruptcy Friday, and an agreement is in place to sell the company to Ziff Davis, a publishing and Internet company. The move allows Gawker’s web properties, which include popular blogs Gawker, Gizmodo, Jezebel, and Kotaku, to still function while the sale is finalized.

“We have been forced by this litigation to give up our long-standing independence.”

Friday’s news is also a direct result of the court battle between Gawker and Hulk Hogan, which was funded by billionaire businessman and PayPal co-founder Peter Thiel. Gawker lost that case, so it was set to pay out nearly $140 million as a result.

CEO and founder Nick Denton doesn’t have much of a choice. In order to move on, Gawker needs to make itself a palatable acquisition target. Unlike Chapter 7, which requires a full liquidation of assets, Chapter 11 allows companies to stay in business while restructuring debt. It also separates any legal proceedings from those who wish to take on the company’s debt — in this case Ziff Davis — and gives Gawker and Denton much-needed funds to mount a legitimate appeal.

“We have been forced by this litigation to give up our long-standing independence, but our writers remain committed to telling the true stories that underpin credibility with our millions of readers,” a defiant Denton said in a statement. “With stronger backing and disentangled from litigation, they can perform their vital work on more platforms and in different forms.”

A new home, under Ziff’s roof

While terms of the deal have not been publicly disclosed, it is expected that Ziff Davis will pay at least $100 million to acquire seven Gawker brands, including Gizmodo, Lifehacker, Kotaku, Jalopnik, Deadspin, Jezebel and Gawker. It should be noted that the sale of Gawker Media will come in the form of a court-mandated supervised auction. This means that other bidders may come forward and purchase the brands, but ZiddDavis appears ready to make an aggressive effort to acquire Gawker should the auction find a winning bidder higher than the offer from Davis.

According to Re/code, both Gawker and its banker expect that to happen — Denton even said last year ahead of the trial that he thought the company might be worth $250 million to $350 million.

Ziff-Davis
Image used with permission by copyright holder

“There’s a tremendous fit between the two organizations, from brands to audience to monetization,” Ziff Davis CEO Vivek Shah said in a memo to employees. “We look forward to the possibility of adding these great brands — and the talented people who support them– to the Ziff Davis family.”

What does this mean for you, the reader? Not a whole lot. Most of Gawker’s sites have posted messages saying that nothing will change, although it’s not out of the question that we may begin to hear about layoffs as the company is forced to prioritize key business operations.

It might also result in a little less gossipy Gawker, but from Denton’s continued public comments, that doesn’t look too likely.

“Even with his billions, Thiel will not silence our writers,” he said on Twitter Friday. “Our sites will thrive — under new ownership– and we’ll win in court.” But Thiel might not be willing to give up so easily.

Denton and Thiel’s feud goes back about a decade — including a December 19, 2007 post where Gizmodo publicly outed Thiel in a post entitled, “Peter Thiel is totally gay, people.” While Thiel has never directly sued Denton or Gawker Media, an earlier Forbes story claims Thiel was behind several lawsuits against Gawker over the years.

Strange bedfellows

Another bizarre part of this story is Ziff Davis as the potential home for Gawker properties. Ziff’s stable of online publications, including PC Magazine and ExtremeTech, aren’t necessarily known for being too controversial and are a long ways away editorially from the gossipy style of Gawker, Gizmodo, and Jezebel.

It’s also an about-face for a company that until recently seemed as if it was trying to condense its editorial pursuits around a few key brands (like the ones we mentioned above), rather than create a vast media network like it once had. It sold all its business publications including eWeek to an investment firm in 2007, and filed for bankruptcy the following year.

In 2010, another private equity firm headed by current CEO Shah purchased what remained of the business, but even then, its purchases — Computer Shopper that same year, and gaming media giant IGN in 2013 — still kept a rather vanilla editorial standard.

Shah doesn’t seem to see it that way. “In the event we become the acquirer, the additions of Gizmodo, Lifehacker, and Kotaku would fortify our position in consumer tech and gaming,” he told employees. “With the addition of Jalopnik, Deadspin and Jezebel, we would broaden our position as a lifestyle publisher.”

That could be, but it certainly seems an entirely different editorial strategy going forward.

Ed Oswald
For fifteen years, Ed has written about the latest and greatest in gadgets and technology trends. At Digital Trends, he's…
Hiring managers need to see this: tips to hire top talent in your sector
Working on computer lifestyle image

This content was produced in partnership with ZipRecruiter.
Yes, you could get started right now posting a job opportunity on one of the many boards. But you're not guaranteed to find the best candidates that way. Getting a worker for your open role, in any field, is never easy. This is even more the case when you need someone specialized or need to hire someone fast. Just posting a job and vetting candidates can take a while, let alone on-boarding your new employees. As your business grows, so too will this issue.

When looking for the right applicant, how do you create an engaging and desirable job posting? How do you look for people with specific skills and filter for only those who qualify? These are all really challenging questions that need to be asked, and answered, before getting your ideal worker on the scene.

Read more
Mobile-first: Empower virtual workers with Verizon Mobile for Microsoft Teams
man having work chat from home office with colleagues on screen.

This content was produced in partnership with Verizon.
In today’s fast-paced business environment, being able to communicate quickly and reliably with coworkers, customers, partners and others is essential. But for many organizations, their workforces are increasingly distributed, hybrid and mobile, and their collaboration experience is fragmented with many, disparate solutions, devices and tools that often don’t work well together. That’s why many companies are turning to collaborative apps like Microsoft Teams to help workers more effectively connect and collaborate no matter where they are.

Microsoft Teams is a comprehensive collaboration work experience that includes meetings, internal calling, chat and more. While Teams has become synonymous with modern work, out of the box it doesn’t offer the ability to make and receive calls outside the organization. Since many employees work remotely, in the field or on the go and need to retain access to enterprise-grade functionality, having a fully-featured unified communication solution from a mobile device is vital. That's where Verizon Mobile for Microsoft Teams comes into play.

Read more
How to hire remote workers
ZipRecruiter Job Board Lifestyle Post

This content was produced in partnership with ZupRecruiter.
Many businesses have learned in recent times that being able to hire remotely is a huge benefit. Rather than being limited to a local pool of potential employees or needing to persuade candidates to move for a new job, remote employment means you have the flexibility of the world. By hiring people from any location and allowing them to work from home remotely, you instantly expand your horizons and the quality of the candidate you might find. But, how do you hire such staff? Here's an overview of how to hire remote workers and what's involved.
Ensure your role can be conducted remotely
Many jobs can be performed well remotely, but not all. It's likely you already know if your business can be easily conducted virtually and remotely, but make sure to consider how effective remote working can be for your firm.

Remote jobs can be as varied as writing, editing, coding, design, or even marketing. It's also possible to hire virtual assistants to work remotely, without any need for them to be working in the same location as you.

Read more