Gawker Settles with Hulk Hogan for $31 Million

Shuttered online news website Gawker Media LLC has reached a $31 million cash settlement with Hulk Hogan, the former professional wrestler who obtained a $140 million judgment against the site over a leaked sex tape.

Hogan's judgment forced Gawker, known for its irreverent tone and gossipy posts, into bankruptcy in June. Its sister websites, including sports site Deadspin and women's site Jezebel, were acquired for $135 million by media company Univision Holdings Inc in a bankruptcy auction this summer.

"As with any negotiation for resolution, all parties have agreed it is time to move on," said Hogan's attorney, David Houston in a prepared statement.

Silicon Valley billionaire Peter Thiel revealed that he helped fund the invasion of privacy lawsuit filed by Hogan, whose real name is Terry Bollea. The news site published an article in 2007 about Thiel's homosexuality.

"It is a great day for Terry Bollea and a great day for everyone's right to privacy," Thiel said in a prepared statement.

Gawker founder Nick Denton, who filed for personal bankruptcy to protect himself from Hogan's judgment, has accused Thiel of using his wealth to carry out a vendetta against him and his site.

Denton, in a blog post published Wednesday, said an "all-out legal war with Thiel would have cost too much, and hurt too many people," even though he was confident a court would have reduced or eliminated the judgment.

"There was no end in sight," Denton wrote.

The settlement also calls for Hogan to receive some proceeds from the sale of the company to Univision. (Reporting by Jessica DiNapoli; Editing by Alan Crosby and Andrew Hay)