Nick Denton put his stock up as a bond to allow him to appeal the case. The stated value was $81 million, over the $50 million minimum deposit required to allow him to proceed with an appeal.
However, Denton failed to disclose that Gawker planned to enter bankruptcy, and had already agreed to sell the company for $90 million.
At the $90 million valuation, Denton’s stock was only valued at $30 million.The judge ruled that the value was inadequate and denied the appeal. He has allowed Hogan to go ahead with the seizure of assets.
Next Up: Please welcome Peter Thiel, our new Liberation overlord of Kinja. He will be lecturing here daily. With him come a host of Liberation, MRA, and PUA bros, direct from Silicone Valley. Please brush up on your Ayn Rand. There will be many pointed quizzes, and much self-righteous pontification by the bro’s.
From the article:
A Florida judge said Gawker founder Nick Denton “misled” the court about the value of his company — and punished him by ruling that Hulk Hogan could start seizing his assets.
Denton told Judge Pamela Campbell in June that Gawker Media Group, Inc. was worth $276 million.
He didn’t have the cash to post the $50 million bond required to appeal the $140 million verdict awarded to Hogan, so he offered his stock in Gawker instead.
Denton said that his 30 percent stake in Gawker was worth $81 million.
The $81 million figure was “used to give [Hogan] and this court the impression that the stock had significant value,” Campbell says in a decision released Friday.
Based on that representation Campbell agreed to the offer—only to learn later that the stock was worth closer to $30 million.
“Mr Denton…misled this court in connection with [his] pledge of Gawker Media Group, Inc. stock by concealing material information about the value of that stock which a reasonable person, under the circumstances, should have disclosed,” Campbell says in the order.
What Denton did not disclose is that he’d already prepared to file bankruptcy on behalf of Gawker and had pledged to sell the company for just $90 million....