Nick Denton files for bankruptcy after Hulk Hogan jury award

Nick Denton, founder, CEO and principal shareholder of Gawker Media, filed for bankruptcy protection Monday, the latest fallout from a contentious lawsuit filed by former pro wrestler Hulk Hogan against his online media company.

In his Chapter 11 filing with the U.S. Bankruptcy Court for the Southern District of New York, Denton estimated his assets to be worth between $10 million to $50 million, while his liabilities are between $100 million to $500 million.

Terry Bollea, aka Hulk Hogan, sued Gawker in May for $100 million after the site posted a video in 2012 of him having sex with his former best friend’s wife. Hogan argued in court that it was a violation of his privacy. And a Florida jury awarded him $55 million for economic injuries and $65 million for emotional distress. The company also has to pay $25 million in punitive damages.

After the jury’s decision, Gawker Media, whose web sites in addition to Gawker also include Deadspin, Gizmodo and Lifehacker, filed for Chapter 11 bankruptcy protection in June and put its assets up for sale.

Gawker files bankruptcy after Hogan lawsuit as Ziff Davis shows interest

Ziff Davis, the digital publisher of AskMen, PCMag and Computer Shopper, placed a bid for Gawker Media's assets — with $100 million as the opening price — prior to an auction that will be supervised by the bankruptcy court. Ziff Davis plans to buy the company's blogs but not assume its liabilities.

Denton likely filed for bankruptcy protection because courts have refused to stay Hogan's judgment against him, which means the retired wrestler would have been able to start seizing Denton’s assets.

Hogan's lawsuit has ignited a firestorm of controversy after it was revealed that Peter Thiel, the Silicon Valley billionaire and co-founder of PayPal, funded Hogan's legal costs to carry on his legal fight. In 2007, Valleywag, a Gawker Media blog, posted a story about Thiel — “Peter Thiel is totally gay, people.”

Hulk Hogan's financial backer known for billions, maverick views

First Amendment advocates have criticized Thiel's involvement, arguing that third-party-funded lawsuits could suppress cash-strapped news organizations and undermine aggressive reporting.

In a memo to staffers Monday, Denton wrote that Thiel's campaign amounts to "a personal vendetta."

"It’s disturbing to live in a world in which a billionaire can bully journalists because he didn’t like the coverage," he wrote. "We’ve spoken truth to power. Sometimes uncomfortable truths. Sometimes gossipy  truths. But truths. There is a price to pay for that, and I am paying it now."

Despite the pending change in ownership, Gawker Mdia "reached" 104 million people in July, 12 million more than April, and "a million dollars in direct advertising bookings" recorded last week.

"The brands and the business, which we have built together, are in amazingly robust shape," he wrote.

Contributing: Kevin McCoy

Follow USA TODAY media reporter Roger Yu on Twitter @ByRogerYu.