The 1938 mansion was sold at an open-air foreclosure auction in Pomona, with the buyer's name kept under wraps for months. The Wall Street Journal, which first reported the buyer's identity, said the winning bid came from a limited liability company linked to Thiel, who co-founded PayPal and Palantir.

$130m sale falls far short of the asking prices

At $130m, the 40,000 sq ft estate is the most expensive home sale in Los Angeles so far this year - yet far below what its late owner once asked.

• •Telecom mogul Gary Winnick sought $225m for the property in 2019 and $250m in 2023, when it was the priciest home in the US
• •Winnick died in 2023 while carrying heavy debt

Inside the 40,000 sq ft estate

Casa Encantada sits on about 8.4 acres overlooking the Bel-Air Country Club.

• •Grand Deco-Hollywood interiors with seven bedrooms, 20 bathrooms, multiple dining rooms and lounges
• •A walnut-paneled library, a tennis court and terraced gardens
• •A 60ft tiled swimming pool and a two-storey guesthouse

A record-setting chain of owners - and Thiel's plans

The house has made price history before. Hotel magnate Conrad Hilton bought it in 1950; billionaire David Murdock purchased it in 1980 for a record $12.4m; and in 2000 it set a second record when it sold to Winnick for $94m.

• •The purchase adds to a real estate portfolio spanning three continents, including compounds in Hawaii and New Zealand and homes in Miami and Washington DC
• •Thiel recently acquired a mansion in the most exclusive neighbourhood in Buenos Aires
• •He reportedly moved his primary residence from California to south Florida last year amid a wealth tax debate in the Golden State

Thiel had considered the mansion for months before the auction, though he does not plan to live there. He sees the property as an investment and plans to upgrade it.