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Nick Denton may be filing for personal bankruptcy this week, after a judge denied a lawsuit shield for the Gawker founder in the Hulk Hogan case.
Gawker is weighing whether to appeal the ruling, according to a source. If it decides not to, Denton will file for bankruptcy this week.
In a Tuesday statement, Denton said, "Peter Thiel's vendetta against my company may well require me as well as the company to file for bankruptcy protection until the Florida appeals court can rule on the extraordinary $140 million judgment. "
Denton said that he is now refocusing on the sale of Gawker and "maintaining the value of the business."
"This story will conclude with Gawker Media's popular brands sheltered under new ownership and the importance of a free and critical press reaffirmed by the courts. In the end, the Facebook board member will have nothing to show for his petty grudge other than legal expenses and a reputation for thin skin," he said.
Last month, Gawker Media filed for bankruptcy protection and put itself up for sale as it faced mounting legal fees. Media firm Ziff Davis has put in a $90 million offer, setting the floor for an opening bid in a court-supervised auction that's expected to take place at the end of July.
Hogan, a former professional wrestler, won a $140 million judgment against Gawker in a lawsuit after the website published a clip from a sex tape in which he appeared.
This story is developing. Please check back for further updates.
— Reuters and CNBC's Matt Belvedere contributed to this report.