What the Gawker Media bankruptcy means for Kotaku, Gizmodo, Deadspin…
Gawker Media has filed for Chapter 11, while announcing intentions to sell to Ziff Davis, or any higher bidder:
Gawker Media has filed for Chapter 11, while announcing intentions to sell to Ziff Davis, or any higher bidder:
NEW YORK — June 10, 2016 — Gawker Media Group (“GMG”) has entered into an asset purchase agreement to sell its seven media brands and other assets to Ziff Davis, a global digital media company which operates in the technology, gaming and lifestyle categories and is a subsidiary of j2 Global, Inc.
Nick Denton, GMG’s founder, said: “We are encouraged by the agreement with Ziff Davis, one of the most rigorously managed and profitable companies in digital media. A combination would marry Ziff Davis’ strength in e-commerce, licensing and video with GMG’s premium media brands.”
In order to offer the business free and clear of legal liabilities and maximize value for all stakeholders, GMG subsidiary GM LLC has filed for Chapter 11 protection from creditors. The sale will be conducted through a bankruptcy court supervised auction, in which other bidders may offer a higher price for the company. GMG is being advised by Mark Patricof of Houlihan Lokey.
During the sale process, GMG will maintain normal operations, publishing news and opinion on technology, politics and other interests to its 6 million readers each weekday, and providing advertisers with access to this desirable audience.
For now that means Kotaku, Gizmodo, Deadspin, as well as other Gawker properties, even the flagship site itself, will continue to publish content for the foreseeable future. However beyond the resolution of the Hogan / Gawker case it’s not known how much of the company will survive when it is eventually sold.
The full memo to staff from Ziff Davis CEO Vivek Shah follows:
From: Vivek Shah
Sent: Friday, June 10, 2016 1:07 PM
To: ZD All
Subject: Announcement
I wanted to share some news about a potential acquisition for Ziff Davis. Earlier today, Gawker Media Group (GMG) filed for Chapter 11 bankruptcy. As part of that process, GMG plans to sell its media properties Gizmodo, Lifehacker, Kotaku, Jalopnik, Deadspin, Jezebel and Gawker.
Ziff Davis has entered into an asset purchase agreement to acquire all of these properties (free of GMG’s liabilities), subject to the outcome of a Court-supervised auction. Under the Chapter 11 process, the Bankruptcy Court will soon set a schedule for other potential bidders to enter the sale process. There will then be an auction, which will likely take place at the end of July.
In the event we become the acquirer, the additions of Gizmodo, Lifehacker and Kotaku would fortify our position in consumer tech and gaming. With the addition of Jalopnik, Deadspin and Jezebel, we would broaden our position as a lifestyle publisher. Much like us, GMG is heavily active in driving commerce-based revenues and has an impressive publishing and commerce platform with Kinja.
As you can see, there’s a tremendous fit between the two organizations, from brands to audience to monetization. We look forward to the possibility of adding these great brands — and the talented people who support them — to the Ziff Davis family.
Gawker Media blogs have also each released statements on the developments:
Oh and of course, Lifehacker…………………….
Locally I can’t see this news having a major impact upon affiliate sites from Australian publisher Allure Media, such as Gizmodo, Lifehacker, and Kotaku Australia. That is unless the new Gawker owner decides to shut down the US versions of these sites, or drastically change the current Gawker formula.
