Gawker files for bankruptcy after losing $140 million case

London: Online news site Gawker has filed for bankruptcy after losing a $140m (£97m) privacy case earlier this year.

The company filed for bankruptcy protection, which could allow it to avoid paying the damages.

In March, Gawker was ordered to pay wrestler Hulk Hogan for invading his privacy by publishing a sex tape.

Gawker told staff it still planned to appeal against the ruling and would continue to operate, but it was now accepting offers to buy the site.

Gawker said it had been forced to put itself up for sale because of “a co-ordinated barrage of lawsuits intended to put the company out of business and deter its writers from offering critical coverage”.

Publisher Ziff Davis, owner of PC magazine and Geek.com, has already made an offer to buy all of Gawker’s assets, reportedly for less than $100m.

In a statement Gawker’s founder Nick Denton said: “We are encouraged by the agreement with Ziff Davis.”

The company does, however, plan to consider other offers as it goes through the bankruptcy process.

Last year Denton estimated Gawker Media, which owns the sites Jezebel and Deadspin, was worth between $250m and $300m.

In its official filing Gawker said it had $50m to $100m in assets and between $100m and $500m in liabilities.

During the three-week trial Gawker defended its right to publish the video as part of its celebrity news coverage, while Hogan argued it had been an invasion of his privacy.

The jury ruled in the former wrestler’s favour and ordered Gawker to pay $115m in compensation and $25m in punitive damage.

In May a judge denied Gawker’s request for a new trial.