The 62-year-old Hogan, whose real name is Terry Bollea, successfully argued that the posting of the secretly recorded video featuring him and a friend's wife -- which is less than two minutes long -- invaded his privacy and humiliated him.
Hogan burst into tears Friday after the six-member jury announced its decision of the mammoth award in a court in St Petersburg, Florida, after just six hours of deliberation. It was more than the USD 100 million Hogan had asked for.
Hogan's lawyer has said the video -- published in October 2012 -- was viewed around seven million times.
Gawker, which could face bankruptcy, intends to appeal.
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The trial was closely watched by legal experts and celebrities as defense attorneys argued the publication of the sex tape was protected by the First Amendment of the US Constitution.
One of America's most famous entertainment wrestlers, the now-retired Hogan was known for wearing a bandana and a handlebar moustache.