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01-20-2016, 02:28 AM
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It’s not a secret that Gawker’s future is at stake in their legal battle with Hulk Hogan. Hogan is suing for $100 million in light of Gawker publishing excerpts of a sex video that was shot without his knowledge, and a judgment of anywhere close to that size could mean the end of the company or bringing on outside financing. Even though legal experts believe that Gawker would win on appeal if they lost at trial, Florida law requires posting a bond amounting to the award plus interest if you’re appealing the figure.
So it shouldn’t come as a surprise that International Business Times reported today that Gawker is calling for an “extraordinary general meeting” this Thursday to approve a new class of shares in the company that would be sold to raise money. Citing their editorial independence, founder Nick Denton had never sought any outside funding before, but the game has changed thanks to the lawsuit.
When Tech Crunch checked in with Gawker about the story, they got the following statement:
With the Hulk Hogan trial beginning in early March, Gawker Media is fortifying its finances to ensure full resources are in place for the continued cost of litigation. Gawker Media is the most heavily trafficked digital media company that has not raised institutional funding and continues to grow at double-digit rates, with significant untapped opportunity across its seven core brands. Until now, Gawker Media has been funding the Hulk Hogan legal expenses from general revenues and given the expenses of continuing to defend our First Amendment rights, the management of Gawker Media has concluded that additional financing should be locked in before the trial begins.
Gawker refused to provide further comment, but the Wall Street Journal is reporting that “person familiar with the situation” told them that “the process of securing outside funds has reached an advanced stage.”
It’s not a secret that Gawker’s future is at stake in their legal battle with Hulk Hogan. Hogan is suing for $100 million in light of Gawker publishing excerpts of a sex video that was shot without his knowledge, and a judgment of anywhere close to that size could mean the end of the company or bringing on outside financing. Even though legal experts believe that Gawker would win on appeal if they lost at trial, Florida law requires posting a bond amounting to the award plus interest if you’re appealing the figure.
So it shouldn’t come as a surprise that International Business Times reported today that Gawker is calling for an “extraordinary general meeting” this Thursday to approve a new class of shares in the company that would be sold to raise money. Citing their editorial independence, founder Nick Denton had never sought any outside funding before, but the game has changed thanks to the lawsuit.
When Tech Crunch checked in with Gawker about the story, they got the following statement:
With the Hulk Hogan trial beginning in early March, Gawker Media is fortifying its finances to ensure full resources are in place for the continued cost of litigation. Gawker Media is the most heavily trafficked digital media company that has not raised institutional funding and continues to grow at double-digit rates, with significant untapped opportunity across its seven core brands. Until now, Gawker Media has been funding the Hulk Hogan legal expenses from general revenues and given the expenses of continuing to defend our First Amendment rights, the management of Gawker Media has concluded that additional financing should be locked in before the trial begins.
Gawker refused to provide further comment, but the Wall Street Journal is reporting that “person familiar with the situation” told them that “the process of securing outside funds has reached an advanced stage.”