Billionaire Peter Thiel Helped Hulk Hogan Win $140 Million After the Leaked Sex Tape of Hogan and Heather Clem

The Hogan case with Thiel's backing posed a significant threat to Gawker Media's future.

July 25, 2026

This article was last updated by Alisha Shrestha on July 25, 2026

Hulk Hogan, an American professional wrestler, was involved in a lawsuit related to his leaked sex tape with Bubba the Love Sponge’s estranged wife, Heather Clem.

Gawker Media released a short clip of the video on October 4, 2012, and the former wrestler subsequently sued the media for defamation, invasion of privacy, and emotional distress.

In April 2012, a private sex tape featuring wrestling icon Hulk Hogan and Heather Clem, the then-estranged wife of radio host Bubba the Love Sponge, surfaced online.

It sparked a media frenzy and led to a series of legal battles, public apologies, and lasting repercussions for those involved.

On October 4, 2012, Gawker published a short clip of the video, intensifying public scrutiny.

In the footage, Bubba could allegedly be heard giving Hogan and Heather Clem permission to do their thing, while he remained in another room.

At the end of the clip, Bubba reportedly told Heather, “If we ever need to retire, here is our ticket,” suggesting the tape could be used for financial gain.

Hogan was deeply embarrassed by the scandal and later admitted on The Howard Stern Show that it was a bad choice.

Billionaire Peter Thiel Funded Hulk Hogan’s Lawsuit Against Gawker

Billionaire investor Peter Thiel played a key role in financing wrestler Hulk Hogan’s lawsuit against Gawker Media.

The American wrestler won a $140 million jury verdict in March 2016 after suing Gawker for invasion of privacy over its publication of a sex tape featuring him.

Gawker, a New York-based website specializing in media and celebrity news, appealed the verdict.

However, the revelation of Thiel’s involvement added a new layer to the legal battle. Thiel, a co-founder of PayPal and an early investor in Facebook, had a personal history with Gawker.

In 2007, the media outed him as gay in an article titled “Peter Thiel is totally gay, people.” Though Thiel never publicly responded at the time, he has since confirmed his sexuality.

Thiel’s financial backing of Hogan’s case raises questions about the motivations behind the lawsuit. While third-party litigation funding is not uncommon, the billionaire’s involvement suggests the potential for significant proceeds from a damage award.

Legal experts note that such secretive financing can disadvantage media defendants by obscuring the true motives behind a lawsuit.

Peter Scheer, executive director of the First Amendment Coalition, explained that knowing the identity of a lawsuit’s financial backer can influence legal strategy.

Gawker Reached A $31 Million Settlement With Hogan

Gawker Media reached a $31 million settlement with former professional wrestler Hulk Hogan, ending a years-long legal battle that ultimately led to the company’s downfall.

The lawsuit stemmed from Gawker’s 2012 publication of a sex tape featuring Hogan and the wife of his then-friend, radio personality Bubba the Love Sponge.

Hulk Hogan wins Gawker sex tape trial. Jury awards him $115 million.

— WORLDSTARHIPHOP (@WORLDSTAR)

Hogan sued Gawker for invasion of privacy, and in 2016, a Florida jury awarded him $140 million in damages.

The case took a dramatic turn when it was revealed that billionaire tech entrepreneur Peter Thiel had secretly financed Hogan’s lawsuit along with other cases against the company.

Thiel’s involvement highlighted the growing tensions between Silicon Valley and the media.

The financial strain of the lawsuit forced

In August of that year, Univision acquired Gawker Media’s assets for $135 million, marking the end of the company’s independence.

Founder Nick Denton stepped down, and Univision rebranded Gawker’s remaining websites under the Gizmodo Media Group. Notably, Gawker.com, the flagship site at the center of the Hogan case, was permanently shut down.

In Case You Didn’t Know

• Terry Gene Bollea, aka Hulk Hogan, was born on August 11, 1953, and passed away from cardiac arrest at his home on July 24, 2026.
• His father, Pietro “Peter” Bollea, was a construction foreman, and his mother, Ruth V, was a homemaker and dance teacher.
• He was married thrice: his first wife was Linda Claridge, his second wife was Jennifer McDaniel, and his third wife was Sky Daily.
• His net worth is at the time of his passing.

• Check other Articles on

Ashish Maharjan, author at Players Bio, has been covering news with a keen eye for detail and a knack for storytelling. A writer with a passion for capturing the essence of athletic competition.

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