Univision Buys Gawker Media For $135 Million After Hulk Hogan Scandal That Led To Bankruptcy

Univision Communications Inc. (UCI) announced it has entered into an agreement to acquire digital media assets as part of the bankruptcy proceedings of Gawker Media Group, Inc. and related companies that produce content under a series of original brands that reach nearly 50 million readers per month , according to comScore. UCI will acquire the digital media assets for $135 million, subject to certain adjustments, and these assets will be integrated into Fusion Media Group (FMG), the division of UCI that serves the young, diverse audiences that make up the rising American mainstream. The deal, which will be accounted for as an asset purchase, includes the following digital platforms, Gizmodo, Jalopnik, Jezebel, Deadspin, Lifehacker and Kotaku. UCI will not be operating the Gawker.com site.

Gawker.com, the flagship site of Gawker Media, will be shutting down operations next week. "Nick Denton, the company's outgoing CEO, informed current staffers of the site's fate on Thursday afternoon, just hours before a bankruptcy court in Manhattan approved Univision's bid for Gawker Media's other assets," J.K. Trotter wrote in the most recent post on Gawker. "Staffers will soon be assigned to other editorial roles, either at one of the other six sites or elsewhere within Univision."

Gawker’s demise came after Terry “Hulk Hogan” Bollea sued for invasion of privacy over Gawker.com’s publication of video footage that depicted him having sex. Gawker Media claimed they were entitled to publish the footage under the first amendment, but lost. The jury eventually awarded Bollea $115m in the suit, and then tacked on another $25m in punitive damages against Gawker Media, $10m against Denton, and $100,000 against then-editor AJ Daulerio.

After the trial, it was revealed that the lawsuit was brought with the financial backing of billionaire PayPal founder and prominent Donald Trump supporter Peter Thiel, out of revenge for a years-old post on the Gawker Media site Valleywag, which both outed him and celebrated his sexual orientation.

With this strategic acquisition, FMG’s digital reach is expected rise to nearly 75 million uniques, or 96 million uniques when including its extended network. The acquisition will further enrich FMG’s content offerings across key verticals including iconic platforms focused on technology ( Gizmodo ), car culture (Jalopnik), contemporary women’s interests ( Jezebel ) and sports (Deadspin), among others. The deal builds on UCI’s recently announced creation of FMG and investments in FUSION , The Root and The Onion , which includes The A.V. Club and ClickHole.

“Fusion Media Group is focused on serving America’s diverse youth with digital-first brands that reflect their values and passions, authentically,” said UCI’s Chief News, Entertainment and Digital Officer, Isaac Lee. “I expect the addition of these digital-first media assets will help FMG exceed the demands of the young, cross-cultural influencers we serve.”

President and Chief Operating Officer of FMG, Felipe Holguin added: “The addition of these iconic digital-first brands give the Fusion Media Group an inimitable opportunity to scale across relevant content verticals and continue to serve key passion points for our audiences.”

UCI announced the formation of FMG earlier this year as the multi-platform destination for the new, rising American mainstream, delivering content that embodies the audience’s shared values and passion points across all platforms. FMG includes The Root, Flama, Univision Digital, Univision Music, as well as Univision’s interest in FUSION, El Rey Network, The Onion, The A.V. Club and ClickHole. FMG also includes Story House, a content development and production unit that produces original content for UCI’s portfolio of owned networks as well as third party networks and platforms.