Underpinning all the recent drama at Gawker Media has been the fact that the company is in the middle of a potentially fatal lawsuit with Terry Bollea (better known as Hulk Hogan), who is suing the website for libel and seeking damages in excess of $100 million over the publication of parts of a sex tape featuring the pro wrestler.
On Wednesday, the New York Times reported that the minority stake was going for an undisclosed sum to Columbus Nova Technology Partners, which counts companies like Rhapsody and Fiverr among its subsidiaries.
Gawker CEO Nick Denton has said that the Hogan suit itself—to say nothing of the actual damages his company might be forced to pay—poses a serious financial burden. The investment helps to fortify Gawker Media’s coffers, as well as fund a few expansion initiatives, including video and an ecommerce project.
Gawker has been an independently run media company since its inception in 2000, and Denton told the Times that the company’s network of sites would continue to enjoy complete editorial control.