Gawker offered Hulk Hogan $10 million to settle his lawsuit. Hogan refused and got $140 million at trial. Why could he afford to gamble on such a risky bet?
Explanation
Hogan could gamble because he wasn't gambling. Thiel was covering every penny of legal costs, so Hogan had no downside risk. Normally, plaintiffs settle because trials are expensive and uncertain. But...
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Peter Thiel secretly spent $10 million to destroy Gawker after they outed him as gay. He hired lawyers, funded Hulk Hogan's lawsuit, and never told anyone he was paying the bills. What's this strategy called?
Easymultiple choiceAfter Gawker's destruction, journalist Felix Salmon warned that Thiel created a _______ blueprint that any billionaire could copy to bankrupt _______ media organization through coordinated lawsuits.
Easyfill in_blanksThiel paid his guy $25,000 a month to plan Gawker's destruction. They considered hacking emails, bugging offices, and stealing phones before deciding to stick with lawsuits. What does this tell you about how billionaires handle bad press?
Easymultiple choice
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