It seems like Gawker is preparing itself for the worst case scenario.
Headed to trial in March to face a $100 million invasion of privacy lawsuit by former pro-wrestler Hulk Hogan over a sex tape that the website posted, Gawker Media has agreed to sell a minority stake to investment company Columbus Nova Technology, as reported by the Wall Street Journal.
Although neither the percentage of the stake nor the financial terms of the deal were disclosed, the Journal reports that the move was made in a continued attempt by Gawker to strengthen its books before the trial begins less than two months from now. The transaction is expected to be finalized on Thursday.
Since 2002, Gawker has remained a self-financed company, presiding under founder and CEO Nick Denton. However, the magnitude of the $100 million lawsuit and potential ramifications of the impending trial have resulted in the company seeking an outside investment. Denton has said in the past that some investors want to wait and see how the trial goes before deciding whether or not to buy into Gawker Media.
This past October, Hogan also accused Gawker of leaking the recording of his racist tirade, which led to World Wrestling Entertainment firing him and wiping his name from its history books and Hall of Fame.
Hogan's accusation came in addition to the $100 million sex tape lawsuit, in which the former pro-wrestling giant is alleging that Gawker violated his privacy by posting parts of the intimate footage on its website. The Gawker author who published the footage stands by the decision.
