[Canopus]

This is a crucial reminder that everyone should have an emergency plan for what to do if Hulkamania runs wild on you.

[Samseau]

(06-10-2016 01:41 PM)Gorgiass Wrote:  

Is the purchasing company liable to pay out any of the settlement in this case? E.g. if they buy Gawker for $100 million, does that go straight to Hulk and that's the end of it or would they still owe him $40 mill? Denton personally liable for anything?

If it does sell the purchasing company is buying a brand with loyal consumers that want the same product the old company was selling, seems unlike anything will change except the address of HQ unfortunately.

ZH reports that if anyone buys them out, they will be paying the Hulk: http://www.zerohedge.com/news/2016-06-10...bankruptcy

Someone really thinks Gawker is worth that much? Can't wait to see how much collateral damage is caused from this buyout. Even if they keep these sites running, they will still be losers in the eyes of the public. And without sensationalist journalism, will these sites be able to maintain revenue?

Forecast not good.

[Sumanguru]

I came in this thread to enjoy others enjoying Gawker's pain, was not disappointed.

[PowerGame]

I read that the judge already ordered 50million bond and like samseau wrote Hulk gets paid first.

And I also read that they got a lot of liabilities towards fucking stupid investment companies.

"The gossip site has between 200 and 1,000 creditors; $50 million to $100 million in assets; and between $100 million and $500 million in liabilities, according to court documents."

It's like a bad feminist blog.. How did they get that much money?

When I was small I always liked Hulk and hated his wife, he deserves a happy ending.

And other quote "Gawker had to put up a $50 million bond after the judge in the Hogan case declined to issue a stay pending the company’s appeal.

It has secured a $7.66 million loan from Silicon Valley Bank with a line of credit of $5.3 million, as well a second credit agreement of $15 million with venture capital firm US VC Partners, court documents said"


By RT sometimes they are on point sometimes propaganda.

[The Black Knight]

Remember what I said in the Hulk thread or whatever it was called a while back:

If possible, we should pool together and buy the Jezebel.com domain name and have it re-direct to ReturnOfKings.com

Poetic justice. Yes sir. The ultimate troll move.

[Suits]

OK guys, we need to buy Jizzabell. It's time to pool our cash and make this happen.

[HornyRamone]

(06-10-2016 12:25 PM)rpg Wrote:  

How is a piece of shit company worth $100 million plus?

There are a lot of stupid piece of shit people who give them clicks, likes and shares.

[Thersites]

(06-10-2016 06:49 PM)HornyRamone Wrote:  

(06-10-2016 12:25 PM)rpg Wrote:  

How is a piece of shit company worth $100 million plus?

There are a lot of stupid piece of shit people who give them clicks, likes and shares.

And blackmail. Gawker had the ability to destroy a person's career if they run an article on you. They were one of the major gateway for people in the media business to read and get ideas. So you play nice with Denton in order to avoid anything bad happening to you. Look at what happen with the Hulk when Gawker released the video of him calling someone the 'n' word. He lost his endorsements and WF scrubbed him from the lineup.

[General Stalin]

If we could somehow pool cash together and Roosh could buy Jezebel.com...

[El Chinito loco]

This is the Hulkster:




This is gawker:

[philosophical_recovery]

(06-10-2016 08:50 PM)El Chinito loco Wrote:  

This is gawker:

[Picture of a pig pooping on his own HUGE BALLS]

I hate it when that happens.

[eatthishomie]

I will put money toward the great Manosphere Jizzabel Purchase. Let's do this!

[WeFuckGoats]

[renotime]

[username]

Even more beautiful is that the writers, editors, and investors for Gawker all thought they were going to get million dollar paydays when Gawker went public. LOL you fools ain't getting shit now.

[CynicalContrarian]

Alexander J.A Cortes Retweeted
casey ‏@notsalome 11h

GAWKER: NO LONGER JUST MORALLY BANKRUPT.

[CynicalContrarian]

Mike Cernovich ‏@Cernovich 4m

I'll be holding a Gawker related meme contest. Cash prizes. Stay tuned!

[EvanWilson]

Comments on the Gawker Chapter 11 filing

First, to summarize, links to my sources, some of which have already been cited to but put here for convenience:
http://www.wsj.com/articles/gawker-decla...1465578030

https://mobile.twitter.com/CNBCnow/statu...3789575168

http://www.zerohedge.com/news/2016-06-10...bankruptcy
(Also contains link to document 1 of the chapter 11 filing)

http://www.wsj.com/articles/gawker-begin...1459889289

Background:
Gawker filed Chapter 11 bankruptcy after it was unable to raise the money to put up a bond, in the amount of $50 million, as required, in order to appeal a judgment of $140 million in the Hulk Hogan case. While it is possible that the award could have been reduced on appeal, Gawker would have needed to post $50 million in order to file the appeal, which it appears it is unable or unwilling to do so. As such, Gawker has filed for Chapter 11 bankruptcy to reorganize the company.

Gawker had revenue of $44.3 million in 2014 and reported a profit of $6.5 million that year. While those numbers do show that the company is turning a profit and can pay something, it would be unlikely that they could pay off the judgment over time, since in most districts, a judgment accrues interest at the rate of 12% per year or 1% per month. With a judgment of $140 million, Gawker’s entire profit for a year would not even pay the interest on the judgment and just grow over time. As such, a chapter 11 filing is the only way for Gawker to be able to continue operating and ‘take care of’ the $140 million judgment.

Valuation of Gawker:
Gawker reported revenue of $44.3 million and profits of $6.5 million in 2014. Depending on the industry and multiples applied, plus taking into account if profit is growing or shrinking, a simple way to give a present value to Gawker’s profit would be to give its net profit a multiple of anywhere between 10 and 20. Doing that would give the company a valuation of anywhere between $65 million to $130 million. The range is wide since we do not know for sure how fast or slow profit is rising or falling, but one source mentioned traffic to the site dropped 14% year over year, so I would tend to view that the lower end of the valuation range would be more realistic of the price someone would pay to buy Gawker.

Chapter 11 bankruptcy filing:
Gawker filed bankruptcy on June 10, 2016 in the Southern district of New York Federal district. In the filing they listed assets of 50 million to 100 million, and liabilities of 100 million to 500 million. The listing of the 20 largest unsecured creditors lists the Hogan judgment at $130 million (news reports list it as $140 million but that may include some post judgment interest now since interest runs from the time the lawsuit was filed to when it gets paid off or part of it is against one or more employees of Gawker), plus 19 other much smaller amounts of around $1 million in total. Clearly, most of the liabilities are the Hogan judgment and the cause of the filing. Document 1 of the filing also lists new financing in the total amount of $22 million, commonly known as debtor in possession financing or DIP. This new financing will have super priority over everything else in the case and would need to be paid off or negotiated first before any other class in the bankruptcy estate was paid.

The Chapter 11 process:
When a company files for chapter 11, a ‘bankruptcy estate’ is created. On that date, at the instant of the filing, all of the assets and liabilities are, ‘collected’, totaled and organized into classes. What will happen, is that a reorganization plan will be proposed, and if approved by the court, carried out on the effective date for the plan. Typically, all of the assets of the company are sold or distributed to the holders of liabilities, in the order of priority.

So far, in this case, I only see three classes of liabilities, as follows, in order of highest priority to lowest:
1: DIP financing for $22 million.
2: Unsecured liabilities of around $141 million.
3: Equity interest held in Gawker Media LLC by Gawker Media Group Inc of 100% (sort of like common shares in a typical corporation. Here Gawker is an LLC that owned 100% by a parent holding corporation.)

When the reorganization plan is proposed, you will see at least these three classes in the plan.

For assets Gawker mainly has the web site plus its equipment and anything else it may own, which looks like it is all going to be sold at auction. It looks like the starting bid for the auction is going to be $90 million from Ziff Davis publishing. I do not expect anyone else would bid much more than that for Gawker.

Assuming the final selling bid for Gawker is $90 million for everything; then that would get distributed to the different classes of liabilities in the order of priority.

First, $22 million would be used to repay the DIP financing plus any interest.
Second, with $68 million left ( 90 – 22 = 68 ), that would be used to pay the unsecured liabilities. Those liabilities are $141 million, but there is only $68 million to pay out, so the unsecured would only recover 68/141 or 48% of what is owed to each of them.
Third, there is nothing left for the equity class in Gawker, so Gawker Media Inc would get zero and its interest in Gawker Media LLC wiped out.

[R Smoov]

[General Stalin]

(06-11-2016 12:53 PM)EvanWilson Wrote:  

snip

If all these terms are accurate, I don't see who in their right mind would even want to consider buying a company with such a debt load. The new would-be owner of GMG would have to cough up an extra $73mio (plus interest) to clear the company out of debt, and it would take years and years to make that money back. That is assuming the business is even profitable after the acquisition and continues to be profitable enough to turn an ROI.

[8ball]

Gawker
Vice
Vox
DailyBeast
HuffingtonPost
Buzzfeed

[911]

Vice is now a Murdoch pet project, they won't let it go out of business even if it loses millions for them. News Corp is more of a vehicle for social and political control than a pure money making machine. They became dominant because they have very powerful backers right from the start.

http://www.aljazeerah.info/Opinion%20Edi...20Duff.htm

[EDantes]

(06-11-2016 04:56 PM)911 Wrote:  

Vice is now a Murdoch pet project, they won't let it go out of business even if it loses millions for them. News Corp is more of a vehicle for social and political control than a pure money making machine. They became dominant because they have very powerful backers right from the start.

http://www.aljazeerah.info/Opinion%20Edi...20Duff.htm

Surprised to hear that considering they own Fox News - definitely seems that Murdoch is more of a savvy businessman than a serious political ideologue.

News Corporation is also the company which produced James Cameron's Avatar (despite it having a stereotypical liberal/hippie/anti-capitalist theme).

[Andreas]

I hope this encourages more people to successful sue big corrupted media like Gawker.

[Sombro]