Bankruptcy was an absurd punishment over a celebrity sex tape.
This was never about a sex tape. It was about Thiel being pissed about an expose of homophobia within silicon valley in which he was outed. The original article Gawker published about him was actually, ironically enough, relatively good journalism, about a matter of legitimate public interest, only partially spoiled by Gawker's carelessness.
You may want billionaires to dictate who can and who can't write the news. Me? I'd rather not live in a thielocracy.