What happens after the bids come in today?įirst, Gawker Media’s banker, Houlihan Lokey’s Mark Patricof, evaluates the bids to see what’s actually in them.
Weird writing about your own company, right? That’s what the New York Post suggested Vox Media wants to do with Penske, the company that owns Variety and other trades. So it’s possible that, say, Jezebel might end up at Refinery29, or Bustle, or someone else that wants a site aimed at young women.Ĭould some bidders team up and split the sites among themselves? It might also want to sell other stuff that doesn’t sync with its dudes-and-tech-centric publishing strategy. Ziff Davis, for instance, has already suggested that it doesn’t want to run, so it could shut it down or sell it off. But do they have to keep all seven Gawker Media sites once they own it? bankruptcy court judge Stuart Bernstein that there’s no possible way they can operate, because it’s permanently tainted by the Hogan tape and other stories.
Yes, pretty much, though it’s possible they can try to convince Gawker Media and U.S. Not all of the bidders you’ve named seem like they have $90 million or more lying around.
#Gawker media selling update
If we do have that uncomfortable conversation, I’ll update this post. I asked Vox Media CEO Jim Bankoff for comment but haven’t heard back. Other names floated recently include New York Magazine, Penske Media and Vox Media, which owns this website. Univision, which has been on a digital media M&A spree, has been a likely suspect for sometime. But since the point of a 363 filing is to elicit a "highest and best" bid, Gawker could argue that a bid designed to shut the company down isn’t the best way to go. And yes, technically, Thiel might be able to do that. Two things: It means that Ziff Davis has an obligation to buy Gawker if no other bidders show up, and it means that any other bid needs to exceed $90 million.Ĭan anyone put in a bid? Could Peter Thiel bid a gazillion dollars and then shut the whole thing down?Īnyone can submit a bid. I read that Ziff Davis put in a $90 million "stalking horse" bid for Gawker. But in theory, if they don’t settle and their win is upheld, they’re supposed to get the proceeds from the auction - minus the money Gawker will use to fight Hogan and Thiel in court.Īnd if Gawker Media owner Nick Denton doesn’t settle and ends up winning the case, then he ( and his new investor, Columbus Nova) keeps the proceeds. That depends on whether they settle with Gawker, which is appealing the verdict. So what will Hogan and Thiel end up with when this is all over? If this sounds familiar, there’s a reason: Lehman Brothers and GM both used 363 filings during the 2008-2009 meltdown. This will leave Hogan, Thiel and Gawker’s other creditors with the rights to the "old" Gawker Media, which is essentially a toxic asset. But Gawker used a "Section 363" bankruptcy filing, which is designed to protect the "good" part of a business that’s overwhelmed by debts it can’t pay, and find it a new owner. Shouldn’t Hogan and Thiel end up owning Gawker Media? Hulk Hogan and Peter Thiel won a $140 million judgement in a privacy case, and Gawker doesn’t have that much. So let’s just call this an exchange between you - a person who has questions - and me, a guy trying to answer them. We can’t call these frequent questions and answers. He isn’t working on the case, but he was generous with his time. I also talked to Peter Friedman, who specializes in this stuff for O’Melveny & Myers LLP. Since I’m not, I asked people familiar with this case for some guidance. If you’re well versed in bankruptcy law, you know what’s going to happen next. Sometime in the next day or so, we should know who’s going to buy Gawker Media: Bids for the bankrupt blog pioneer are due by 5 pm ET today, and tomorrow Gawker’s banker will conduct an auction.
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