Felix Salmon: ‘Peter Thiel’s Dangerous Campaign Against Gawker’

Felix Salmon, writing at Fusion, making the case that Peter Thiel revealed his role in the Hogan-Gawker case as a strategic move:

But then the Thiel bombshell dropped. The Hogan case, it turned out, wasn’t a war in which Gawker could emerge victorious; instead, it was merely a battle in a much larger fight against an opponent with effectively unlimited resources.

Gawker could continue to fight the Hogan case; it could even win that case outright, on appeal. But even if Hogan went away, Thiel would not. Thiel’s lawsuits would not end, and Thiel’s pockets are deeper than Denton’s. Gawker’s future is indeed grim: it can’t afford to fight an indefinite number of lawsuits, since fighting even frivolous suits is an expensive game.

The result is that investing in Gawker right now is a very unattractive proposition, since any investor knows that they will be fighting a years-long battle with a single-minded billionaire who doesn’t care about how much money he spends on the fight. And if Gawker can’t raise any new money to continue to fight the Hogan case, then its corporate end might be closer than anybody thinks.

★ Thursday, 26 May 2016