Gawker on the Chopping Block after Hogan Verdict

From the moment it was passed down, that massive judgment against gossip site Gawker was being called a death knell for the company. They had gone up against Hulk Hogan and found themselves on the receiving end of a big leg drop worth more than $140 million.

After all but exhausting appeals, the company reportedly hired an investment banker to look at other potential options, including a fire sale. “Disgraced media company – get it cheap!”

Of course, the company is steadfast in its belief that it will win its latest appeal of the Hogan verdict. That contacting the investment banker about a potential sale was a remote plan B possibility, a contingency if things don’t go as expected. Possible, sure, but the increasing number of stories piling up suggesting a sale point at “not very probable.”

Even if they do sell, it may not be enough. Gawker’s estimated worth is somewhere around $83 million, and company revenue in 2015 was around $48 million. There’s just enough “there” for a sale to compensate the judgment.

But there’s another wrinkle to this story, a juicy detail that sites like Gawker would LOVE to break in a headline. According to the Associated Press, the Hogan lawsuit against Gawker was largely bankrolled by billionaire Peter Thiel. Apparently, Thiel told the New York Times he hired attorneys to bring cases against Gawker because, way back in 2007, the company wrote some nasty rumors about him as well as a few of his friends.

From the perspective of a public relations professional, that scenario opens up all sorts of potential, both opportunities and problems.

First, the opportunities. The events of this case underscore the power of the press, to cut both ways. It can be used to attack and criticize, to promote and advertise. Media, despite the evolving delivery system, is still an incredibly viable form of mass communication.

Now, the problems. When you put out a message against a person or company with a long memory, you better be prepared for the consequences of that action. If you aren’t, it can come back to bite you … and gobble you right up.

Elie Hirschfeld is a real estate developer in NYC.