The popular online news site Gawker has officially filed for bankruptcy. In March, the news site committed the crime of posting Hulk Hogan’s sex tape on their site. Hulk Hogan, a pro wrestler, was videotaped having sex with the wife of a friend, a video that was then published on Gawker’s site. Hulk Hogan sued the site after Gawker refused to take the video down.
During the trial, Gawker claimed that they had the right to post the video due to their “celebrity coverage.” However, Hogan countered this argument by saying that the video was a huge invasion of his privacy. Gawker lost this case and was sentenced to pay $115 million to the pro wrestler along with $25 million in punitive damages.
The result of this case sparked an urgent monetary crisis for the Gawker news site. Due to the tremendous amount of money they had to pay, the company was put on the market and began accepting offers for a buyout.
Gawker told employees that it was trying to overturn the decision, however, the judge has already rejected the request for a new case.
The publisher Ziff Davis has extended an offer, but it is unclear as to whether or not the news site will take it since the offer was much less than what the company had been worth.
