Gawker Media Inc. has hired an investment banker to explore strategic options, including a possible sale, as the digital media company fights a potentially crippling $140 million damages award in a defamation suit brought by former pro wrestler Hulk Hogan.
Mark Patricof, managing director at Houlihan Lokey, will advise Gawker on its options amid the legal clash secretly bankrolled by billionaire investor and Facebook board member Peter Thiel, the company said Thursday.
On Wednesday, a Florida judge denied Gawker’s motion for a new trial and said the $140 million jury verdict won’t be reduced, The Associated Press reported. Gawker can still appeal to a higher Florida court.
“We’ve had bankers engaged for quite some time given the need for contingency planning around Facebook board member Peter Thiel’s revenge campaign,” Gawker said Thursday in a statement. “We recently engaged Mark Patricof to advise us and that seems to have stirred up some excitement, when the fact is that nothing is new.”
Gawker isn’t currently for sale and there aren’t any bidders, but that could change if it loses an appeal, according to a person familiar with the matter.
Hogan, whose given name is Terry Bollea, sued the media and celebrity-focused website in 2012 over the publication of a tape showing him having sex with a friend’s wife, claiming the publication cost him endorsements and inflicted emotional harm. Thiel, the libertarian-leaning venture capitalist who co-founded PayPal, made a financial contribution to the suit.
Gawker and Thiel have a contentious history already – the website outed him as gay in 2007. Thiel has since publicly acknowledged that he’s gay, and called Gawker’s now-defunct blog Valleywag the “Silicon Valley equivalent of al-Qaida.”
In a statement Thursday, Thiel said he was proud to have supported Bollea in a fight against a “bully’s gross violation of privacy.”
“Gawker, the defendant, built its business on humiliating people for sport,” Thiel said. “They routinely relied on an assumption that victims would be too intimidated or disgusted to even attempt redress for clear wrongs. Freedom of the press does not mean freedom to publish sex tapes without consent. I don’t think anybody but Gawker would argue otherwise.”
Send questions/comments to the editors.
Success. Please wait for the page to reload. If the page does not reload within 5 seconds, please refresh the page.
Enter your email and password to access comments.
Hi, to comment on stories you must . This profile is in addition to your subscription and website login.
Already have a commenting profile? .
Invalid username/password.
Please check your email to confirm and complete your registration.
Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.