Federal Judge to Review Controversial Sale of Infowars to The Onion Amid Legal Disputes

Gavel and scales of justice on desk.

A federal judge is set to scrutinize the controversial sale of Infowars to The Onion, following accusations of an unfair auction process.

At a Glance

  • Infowars, Alex Jones’ company, was sold to satirical news outlet The Onion in a bankruptcy auction
  • The sale requires approval from a bankruptcy judge amid concerns over the auction’s transparency
  • Proceeds will go towards Jones’ $1.5 billion debt to Sandy Hook families from defamation lawsuits
  • Jones claims the auction was rigged and continues broadcasting from a backup studio

Controversial Sale Sparks Legal Review

In a surprising turn of events, the sale of Infowars, the controversial media platform founded by Alex Jones, to satirical news outlet The Onion has been halted pending review by a federal bankruptcy judge. The sale, which emerged from Jones’ personal bankruptcy filing in late 2022, has raised eyebrows and sparked debate over its legitimacy and transparency.

The auction included Jones’ studio, equipment, online nutritional supplement store, domain names, customer lists, and various social media accounts. However, the process has come under scrutiny, with allegations of procedural irregularities and lack of transparency.

Auction Process Questioned

U.S. Bankruptcy Judge Christopher Lopez expressed surprise and concern over the auction’s proceedings, particularly the absence of an overbidding round. This unusual omission has led to questions about the fairness of the process and the true value of the assets being sold.

“We’re all going to an evidentiary hearing and I’m going to figure out exactly what happened.” – U.S. Bankruptcy Judge Christopher Lopez

The auction had only two bidders: The Onion and First United American Companies, an entity associated with an online supplement store linked to Alex Jones. First United bid $3.5 million in cash but claims they were not informed of the winning bid amount or given a chance to increase their offer.

The Onion’s Winning Bid and Future Plans

The Onion’s winning bid included a “credit bid,” where some Sandy Hook families agreed to temporarily forgo collecting part of the damages owed to them. This arrangement was deemed a better deal by the auction trustee, Christopher Murray, despite not being the highest cash offer.

“Money was never their goal, and if taking less money meant that they would be able to shut down Infowars and Alex Jones and protect other families from suffering that they suffered, they were more than willing to do that.” – Chris Mattei

The Onion has partnered with Everytown for Gun Safety and plans to relaunch Infowars as a parody site mocking misinformation and personalities like Alex Jones. This move represents a significant shift in the platform’s direction and content.

Jones’ Response and Ongoing Legal Battles

Alex Jones continues to broadcast from a backup studio and claims the auction process was rigged. He is appealing the defamation cases and continues to solicit financial support from his audience.

“This was a auction that didn’t happen, with a bid that was lower, with money that wasn’t real.” – Alex Jones

The bankruptcy judge previously ruled that Jones’ actions were “intentional and malicious,” allowing families to pursue his future earnings. This ruling, combined with the nearly $1.5 billion in damages awarded to Sandy Hook families, marks a significant financial and legal challenge for Jones.

As the federal judge prepares to review the sale, the future of Infowars remains uncertain. The outcome of this legal scrutiny could have far-reaching implications for Jones, The Onion, and the Sandy Hook families seeking justice and closure.

Sources:

  1. Federal Judge Orders Hearing Into Questionable ‘Auction’ of Infowars to The Onion
  2. The Onion wins auction for Alex Jones’ media company
  3. How Alex Jones’ Infowars wound up in the hands of The Onion
  4. The Onion Wins Bid to Buy Infowars, Alex Jones’s Site, Out of Bankruptcy

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