They say what goes around comes around. So, when Gawker outed PayPal co-founder Peter Thiel as being gay in 2007, it was the same, classic shortsighted editorial decision as publicizing Hulk Hogan’s private sex life. In what is one of the greatest chess moves of all time, we’ve come to find out that Thiel has been bankrolling the Hogan team to a tune of $10 million dollars as he continues to battle Nick Denton for the transgressions against The Hulkster.
Some of the biggest heavyweights in Silicon Valley are voicing their overwhelming support of Thiel, who has funded other lawsuits against Gawker in the past with the ultimate hope of squeezing them out of business. Finishing them like a big old Hogan leg drop.
The idea of sensationalism for the sake of clicks and pageviews will always exist, but Gawker’s real implosion has been triggered by Denton himself. Proudly announcing you’re in the business of ruining lives, especially those of the rich and powerful, has left Gawker susceptible to tactical warfare, which is how guys like Thiel make their fortunes to begin with. Thiel grew up a chess prodigy in Germany for crying out loud. Any sensible individual would figure he’d be the last enemy you’d want to make.
Yesterday, Gawker predictably disagreed with Thiel’s notion that they’ve waged some sort of witch hunt against him. They’ve maintained that their coverage on Thiel, aside from outing him, has been mainly focused on business ventures, his seat on the board of Facebook, and their lack of transparency and controversial public stances. The Silicon Valley battles against Valleywag, Gawker’s self- proclaimed “Silicon Valley gossip and news site,” are legendary with Thiel leading the charge against it.
As far as Hogan is concerned, despite having a ton of personal wealth, (reportedly in the neighborhood of $25 million) having the stability to stand in and fight must have given him the strength to stare embarrassment in the face and focus on winning the case. That stability could not have happened without Thiel’s support. This begs the question of whether it is actually legal. Thankfully, we can turn to Sports Illustrated’s Michael McCann for legal insight.
Enter the 48-year-old Thiel, who Forbes estimates has a net worth of $2.7 billion. By financing Hogan’s litigation, Thiel removed the deterrent of cost from Hogan’s calculus on whether or not to sue Gawker. The only remaining deterrents were Hogan’s time and energy, and those factors didn’t dissuade him. For a person of Thiel’s wealth, Hogan’s attorneys’ fees were likely inconsequential costs. Indeed, Thiel had a clear purpose in mind with Hogan’s case. He told the Times he sought “specific deterrence,” which in law means designing a punishment to deter a defendant (here Gawker) from ever repeating its mistake. Should Hogan’s $140 million stand, Thiel could obtain far more than specific deterrence: He might force Gawker to shut down altogether.
But what does this mean for journalism going forward? Can power and influence wield the mighty sword in court if they don’t feel like they are getting treated properly? Does this give an advantage to celebrity-driven publishers who are in control of narratives of the famous like Derek Jeter’s The Player’s Tribune? Right now, these questions are without answers.
If Thiel does in fact succeed in either putting Gawker out of business or forcing Denton into submission, consider that checkmate in a chess match that has been going on between the two for the past 9 years and arguably his biggest win to date.