Hogan, whose real name is Terry Bollea, took Gawker to court after the site posted a sex tape of him. The judge awarded Bollea up to $140 million in damages, prompting Gawker to declare bankruptcy.
Gawker founder Nick Denton said he initially intended to appeal the ruling. But he decided to settle the case to "focus on activities more productive than endless litigation."
The final outcome of the case is also a victory for Peter Thiel. After Gawker outed him as gay, the Silicon Valley billionaire investor largely funded Bollea's case against the site.