Tech Billionaire Secretly Funded Hulk Hogan’s Lawsuit Against Gawker

The drama between Hulk Hogan and Gawker continues after news broke Wednesday that Silicon Valley billionaire Peter Thiel secretly bankrolled Hogan’s legal bills for his lawsuit against the site.

On Monday, the New York Times reported that there may be some validity to the conspiracy theories speculating that the former WWE star had a financial backer funding his costly three-year legal battle with the gossip news site.

Then on Tuesday, the rumors quickly turned into reality when Forbes reporters Ryan Mac and Matt Drange claimed to have uncovered the financial backer’s identity. In an article published Tuesday night the pair wrote:

According to people familiar with the situation who agreed to speak on condition of anonymity, Thiel, a cofounder and partner at Founders Fund, has played a lead role in bankrolling the cases Terry Bollea, a.k.a. Hogan, brought against New York-based Gawker. Hogan is being represented by Charles Harder, a prominent Los Angeles-based lawyer. A spokesperson for Thiel declined to comment.

Hogan sued Gawker after the gossip blog published a portion of Hogan’s leaked sex tape with Heather Cole, who at the time was married to Hogan’s best friend, radio personality Bubba “the Love Sponge” Clem. In late March, Hogan was awarded $140 million in damages.

According to the Times,

Questions about the independence of Mr. Bollea, who never mentioned a third-party backer, first emerged when his lawyer removed a claim from his complaint that had the effect of eliminating Gawker’s insurance company from the case. That struck many legal observers as odd, given that most lawyers seeking large payouts want to include claims that are insured against because doing so increases the chances of a settlement.

If Thiel is the one financing Hogan’s legal bills, it would make some sense. Thiel, who is gay, has been outspoken about his hate for Gawker ever since the site crossed ethical boundaries when it tried to out him in a piece titled “Peter Thiel is totally gay, people.”

As it stands there’s still a lot we don’t know about the pair’s potential partnership. For example, is Thiel Hogan’s only backer? How did they become involved with one another? Will Hogan pay Thiel back if he wins? After all, it is not illegal for a third party to fund someone’s legal bills. In fact, this arrangement is not at all uncommon, and often happens when the third party has an ulterior motive.

Since Hogan’s case ended, Gawker has been hit with several new lawsuits filed by Hogan’s lawyer, Charles Harder, that target certain writers, and on Wednesday a judge denied Gawker’s motion for a new trial in the Hulk Hogan case.

Alexis Evans

Alexis Evans is an Assistant Editor at Law Street and a Buckeye State native. She has a Bachelor’s Degree in Journalism and a minor in Business from Ohio University. Contact Alexis at aevans@LawStreetMedia.com.