Hulk Hogan Awarded Extra $25 Million, Can Gawker Even Pay?
The court added an extra $25 million to the $115 million awarded to ex-wrestler Hulk Hogan for his case against Gawker Media. But does Gawker have the money to pay these charges, and if so, will it go bankrupt?Advertisement
The jury said the website should shoulder $15 million of the punitive damages, and site owner Nick Denton is liable for $10 million. Former editor-in-chief, A.J. Daulerio, who wrote the piece that shows the sex video, is liable for an additional $100,000.
As far as Daulerio’s amount is concerned, it is kept low owing to the fact that he has no asset. He even has a negative net worth of of $27,000 because of student debts.
Hogan already received $115 million in his lawsuit against Gawker Media on Friday, $55 for financial injuries while $60 was for the emotional distress he went through.
Gawker media will have a hard time paying the $115 million that was awarded to Hogan. Adding $25 million is going to be pure torture for the company. Back in January, Gawker had to sell a minority stake to Columbus Nova Technology Partners to prepare for their defense, as reported by NY Times. Back in 2014, it was previously reported that the net worth of company was $250 million. The site’s legal camp said it is only worth $83 million now.
Allegedly, the Gawker founder does not have enough to bail the company out using his own money as well. “I have way, way less money than people think!” Denton allegedly told his staff back in January.
“… I don’t have hundreds of millions of dollars to kind of bail the company out. If we are in an environment with higher business risk and higher legal risk, then the company is going to need somebody with deeper pockets and hopefully principles in order to keep it both commercially viable and editorially viable.”
When it comes to the reaction of the media industry, the high amount is said to be extreme. However, the amount is so high it can be considered a blessing. Even Gawker’s enemies will not be comfortable with the court’s decision because the amount of charges is way off.
“The damages were so high that it kinda came out the other side,” one staffer said, as reported by NY Mag. “I think everyone would have been happier if, instead of fining Gawker $115 million, the court had sentenced A.J. Daulerio to hard labor as Hulk Hogan’s butler,” another opined as well.