Bankrupt Gawker Media enters into settlement talks with Hulk Hogan
Gawker Media has reportedly entered into settlement talks with Hulk Hogan after the media company lost its litigation battle with the former wrestler – backed by billionaire PayPal founder Peter Thiel.
Gawker was forced to file for bankruptcy after it was successfully sued by Hogan for $140m after publishing a clip from a sex tape in which he was caught in bed with the wife of a friend.
By declaring itself bankrupt Hogan has thus far not received a penny from the business although its assets will now be auctioned off as a result.
Founder Nick Denton, who is held liable for $10m has also declared bankruptcy and then editor AJ Daulerio, who is on the hook for $100k, is expected to follow suit.
Hogan was subsequently dismissed by World Wrestling Entertainment following the leak of an additional portion of the recording in which he was seen to employ strong racist insults, prompting Hogan to sue a second time alleging that gawker had leaked the content.