Updated x2: Judge Issues Final Judgement In Hogan-Gawker Case, Gawker Files For Bankruptcy

UPDATE x2: Gawker has issued a press release revealing that they have entered a purchase agreement with Ziff Davis, which owns IGN, AskMen and PCMag. The sale will be conducted through a bankruptcy court supervised auction. Others could buy the company if they make a higher bid.

Founder Nick Denton said: “ “We are encouraged by the agreement with Ziff Davis, one of the most rigorously managed and profitable companies in digital media. A combination would marry Ziff Davis’ strength in e-commerce, licensing and video with GMG’s premium media brands. Authentic writing, whether it takes the form of honest reviews of technology, video games and entertainment, or revelations about the way the system works, is more important than ever. We have been forced by this litigation to give up our longstanding independence, but our writers remain committed to telling the true stories that underpin credibility with our millions of readers. With stronger backing and disentangled from litigation, they can perform their vital work on more platforms and in different forms.”

UPDATE: According to The Hollywood Reporter, Gawker Medias has filed for Chapter 11 bankruptcy after the judge in their case against Hulk Hogan issued a final judgment today. The company was founded in 2003 by Nick Denton and includes other sites like Deadspin, Jezebel and Kotaku and brings in about 44 million unique visitors (as of last month). They claim they have less than $100 million in assets and hundreds of millions in liabilities.

They are also currently in legal battles with the parent company of The Daily Mail and were hit with a copyright lawsuit over a photograph of an Uber car. In addition to that, a journalist and alleged inventor of e-mail both claim they were defamed. They hired investment bank Houlihan Lokey for advice on a sale. Ziff Davis is looking at an opening bid of $100 million to auction off the site. The bankruptcy papers state that Gawker acquired a $7.66 million loan from Silicon Valley Bank with a line of credit worth $5.3 million. They also have a second credit agreement worth $15 million with US VC Partners. That’s $22 million in debtor financing. Hogan is listed as the biggest unsecured creditor in the claim. They also owe $115 to the law firm of Morrison Cohen and $82,000 to Risk Strategies Company.

Original: TampaBay.com reports that Gawker Media’s lawyers will be in a Pinellas court this morning to ask the judge to postpone the $140.1 million judgment awarded to Hulk Hogan. The hearing is expected to last for two hours. Hogan is not expected to show up.

Hogan sued Gawker in 2012 after the website posted a video (lasting a minute and 41 seconds) of him having sex with Heather Clem, the wife of Bubba The Love Sponge. He claimed his privacy was violated. The case went to trial where a jury ordered that Gawker, CEO Nick Denton and former editor AJ Daulerio pay Hogan the $140.1 million. Last month, circuit judge Pamela A.M. Campbell denied Gawker’s motion for a new trial.