Book: Conspiracy: Peter Thiel, Hulk Hogan, Gawker, and the Anatomy of Intrigue
Quotes of Book: Conspiracy: Peter Thiel, Hulk
With patience and resources," Mr. A would come to say often on his weekly calls with Peter, "we can do almost anything." Tolstoy had a motto for Field Marshal Mikhail Kutuzov in War and Peace-" Patience and Time." "There is nothing stronger than those two," he said, ". . . they will do it all." In 1812 and in real life, Kutuzov gave Napoleon an abject lesson in the truth of that during a long Russian winter. The target, Nick Denton, is not a patient man. Most entrepreneurs aren't. Most powerful people are not. One of his editors would say of Denton's approach to stories, "Nick is very much of the mind that you do it now. And the emphasis is to get it out there and be correct as you can, but don't let that stand in the way of getting the story out there." Editorially, Nick Denton wanted to be first-which is a form of power in itself. But this isn't how Thiel thinks. He would say his favorite chess player was José Raúl Capablanca, and remind himself of the man's famous dictum: To begin you must study the end. You don't want to be the first to act, you want to be the last man standing. History is littered with examples of those who acted rashly in pursuit of their goals, who plunged ahead without much in the way of a plan, and suffered as a result. One could argue that the bigger of Nixon's two blunders wasn't his attacks on the Democratic Party but the decision to go after Katharine Graham and the media, and yet both decisions were the product of a fundamental lack of patience and discipline. Or consider the late head of Fox News, Roger Ailes, who responded to a series of Gawker articles and attacks by allegedly hiring private detectives to follow the reporters around. Not only did he find nothing of practical value, but these heavy-handed tactics came back to embarrass and discredit him at his most vulnerable moment. In fact, two weeks after the news of this disturbing conspiracy broke, he would be dead. How ought one do it then? book-quoteIn the years he conspired against Gawker, Thiel would come to see the U.S. legal system differently. He later said that, before the case against Gawker, he had believed that the problem in America was too many lawsuits and too many lawyers. Like many media outlets, Gawker's legal strategy had been to lean into that understanding-to be the black hole of time and money whose event horizon no one could afford to confront. With his immense resources, Thiel believed he had simply changed the equation. The fact that Hulk Hogan, a "single-digit millionaire" as Thiel put it, would not otherwise have had the funds to pursue a case like this means that there might be many other legitimate legal precedents or cases that have otherwise gone unpursued out of intimidation or lack of funds {it cannot be said with a straight face that A.J. and Nick did not have "legal protection"}. Having actually gone through the system, Thiel would come to believe that maybe there weren't enough lawsuits. That people should try more. And so he puts more money behind the idea, funding in 2016 a start-up called Legalist, conceived by a Thiel fellow, dedicated to bankrolling lawsuits with a high probability of winning and possibly setting new precedents. book-quoteThere is a scene in the movie The Assassination of Jesse James by the Coward Robert Ford. At the beginning, in the woods, Robert Ford, played by Casey Affleck, illustrates this phenomenon. He thinks the outlaw Jesse James is a great man. He thinks that he, himself, is a great man, too. He wants someone to recognize that in him. He wants someone to give him an opportunity-a project through which he can prove his worth. It just happens that Frank James would size the delusional, awkward boy up in the woods outside Blue Cut, Missouri: "You don't have the ingredients, son." In contrast, Mr. A is ambitious, but it's paired with self-confidence, social adeptness, and a clear sense of what Thiel wanted. Even so, the prospect of meeting with Thiel is intimidating: his stomach churning, every nerve and synapse alive and flowing. He's twenty-six years old. He's sitting down for a one-on-one evening with a man worth, by 2011, some $ 1.5 billion and who owns a significant chunk of the biggest social network in the world, on whose board of directors he also sits. Even if Thiel were just an ordinary investor, dinner with him would make anyone nervous. One quickly finds that he is a man notoriously averse to small talk, or what a friend once deemed "casual bar talk." Even the most perfunctory comment to Thiel can elicit long, deep pauses of consideration in response-so long you wonder if you've said something monumentally stupid. The tiny assumptions that grease the wheels of conversation find no quarter with Thiel. There is no chatting with Peter about the weather or about politics in general. It's got to be, "I've been studying opening moves in chess, and I think king's pawn might be the best one." Or, "What do you think of the bubble in higher education?" And then you have to be prepared to talk about it at the expert level for hours on end. You can't talk about television or music or pop culture because the person you're sitting across from doesn't care about these things and he couldn't pretend to be familiar with them if he wanted to. book-quoteThe historian E. P. Thompson said that history never happens as the actors suspect, that history is instead the "record of unintended consequences." The assassination of Julius Caesar does not restore the Roman Republic, it leads to a brutal civil war and, at the end, another emperor. The Allied powers destroy Hitler and Germany but empower Russia and Stalin and create a new Cold War to follow the conclusion of the hot one. There is always something you didn't expect, always some second-or third-order consequence. Peter Thiel's conspiracy had achieved its intended outcome. A negotiated peace had been found. Gawker.com would cease to publish. A new leader was in charge of the rest of the sites, some of the offending articles would be removed. But what would the consequences, intended and otherwise, of it all be? What had this brilliant, independent mind neglected to see? What, if anything, would come as a surprise? His own power and strength for one. book-quoteMachiavelli writes that a conspiracy without any coconspirators is not a conspiracy. It's just a crime. This is also basic legal principle. If you kill someone by yourself, in the heat of the moment, it's murder. If you meticulously plan it with someone else beforehand, that's conspiracy. Lee Harvey Oswald almost certainly assassinated John F. Kennedy by himself. What he hoped would happen as a result is unclear. John Wilkes Booth conspired not only to assassinate Abraham Lincoln, but working with Lewis Powell and George Atzerodt also aimed to assassinate Andrew Johnson and William Seward. It was a coordinated attempt by Confederate sympathizers to usurp the United States government. It's not simply a single crime, but a crazed, desperate effort to turn back the tide of a lost war. In his definitive book on the subject of strategy, Lawrence Freedman writes that "combining with others often constitutes the most strategic move." By definition, the first move in the act of a conspiracy is the assemblage of allies and operators: your coconspirators. Someone to do your bidding, to work with you, someone you can trust, who agrees with you that there's a problem, or is willing to be paid to agree with the sentiment that it's about time someone, somebody did something about this. Each hand doesn't need to know what the other is doing, but there needs to be more than one set. Thus, Thiel's vague idea to do something about Gawker is concretized into conspiracy on April 6, 2011. It began unremarkably, when Thiel traveled to Germany to speak at a conference and had dinner with a student he'd met on a tour of a university a few years before. Peter arrives, driven in a black S-class Mercedes, the same model he has idling outside with a driver, twenty-four hours a day, seven days a week, wherever he is in the world. book-quoteThe essayist and investor Paul Graham, a peer and rival of Peter Thiel's, has charted the trajectory of a start-up, with all its ups and downs. After the initial bump of media attention, the rush of excitement from the unexpected success, Graham says that the founders enter a phase where the novelty begins to wear off, and they quickly descend from their early euphoria into what he calls the "trough of sorrow." A start-up launches with its investments, gets a few press hits, and then smacks right into reality. Many companies never make it out of this ditch. "The problem with the Silicon Valley," as Jim Barksdale, the former CEO and president of Netscape, once put it, "is that we tend to confuse a clear view with a short distance." Here, too, like the founders of a start-up, the conspirators have smacked into reality. The reality of the legal system. The defensive bulwark of the First Amendment. The reality of the odds. They have discovered the difference between a good plan and how far they'll need to travel to fulfill it. They have trouble even serving Denton with papers. Harder has to request a 120-day extension just to wrap his head around Gawker's financial and corporate structure. This is going to be harder than they thought. It always is. To say that in 2013 all the rush and excitement present on those courthouse steps several months earlier had dissipated would be a preposterous understatement. If a conspiracy, by its inherent desperation and disadvantaged position, is that long struggle in a dark hallway, here is the point where one considers simply sitting down and sobbing in despair, not even sure what direction to go. Is this even possible? Are we wrong? Machiavelli wrote that fortune-misfortune in fact-aims herself where "dikes and dams have not been made to contain her." Clausewitz said that battle plans were great but ultimately subject to "friction"-delays, confusion, mistakes, and complications. What is friction? Friction is when you're Pericles and you lay out a brilliant plan to defend Athens against Sparta and then your city is hit by the plague. book-quoteThe Russians call this maskirovka-the art of deception and confusion. It is as old as strategy itself. Undermine your enemy, Sun Tzu advised 2,500 years ago. "Subvert him, attack his morale, strike at his economy, corrupt him. Sow internal discord among his leaders; destroy him without fighting him." Call down the fog of war, he was telling conspirators and generals and swordsmen, let it descend on your opponent until they cannot see what is right before them. Because "all warfare," Sun Tzu reminds us, "is based on deception." Not just keeping secrets-that's the first part, the passive part, a refusal to reveal your true intentions-but active, outwardly focused deceit intended to disorient and weaken the enemy. The long-term strategic drive to a decisive legal action-the hope of taking a case against Gawker to a real jury of normal people outside the Manhattan media bubble-had been set by Peter Thiel early on. By 2012, not only was the ideal case found with which to execute this strategy, but a lawsuit was filed within days of discovery. As the case wound its way through the legal system in 2013, it had seen many setbacks, some expected and others not, but these setbacks were not without their upside. They had, in the end, created a scenario in which the case's final home in Florida district court might spell a bankruptcy-level event for Gawker Media. book-quoteThe line from the Obamas was "When they go low, we go high." It's a dignified and impressive mantra, if only because for the most part, whether you liked them or not, it's hard to deny that they followed it. But the now cliché remark should not be taken conclusively, for it makes one dangerous omission. It forgets that from time to time in life, we might have to take someone out behind the woodshed. How we have lost this. How squeamish we have become. We now blindly demonize what is often one of the most effective forms of action. How vulnerable this ignorance has made us to the few real conspiracies, successful or not, that exist in the world. In this rare occasion, though, we got a glimpse, a peek behind the curtain, as the title of Gawker's last post put it, of how things work. Now we know. Peter showed us. And yet our instinct is to turn away, to put our fingers in our ears. It's why not once in nearly a decade of concentrated effort and scheming directed at a single enemy-at an entity who was obsessively covered and followed by the media-by an opponent who publicly stated his undying hatred of that enemy, did a single spectator, victim, or even many of the participants suspect any of what you read in the pages of this book. There is no question that what Thiel did over those years was brilliant, cunning, and ruthless. It is equally true that Gawker mostly beat itself. Denton and company allowed this to happen. Even the most cynical and aggressive media site on the planet had missed what was happening right in front of them; they did nothing to save themselves. "The idea of a conspiracy," Thiel would say to me, "is linked with intentionality, with planning, working towards longer-term goals. In a world where you don't have conspiracies maybe also those things disappear." book-quote
