Judge Rejects Sale of Alex Jones’ Infowars to The Onion
A federal judge has blocked the proposed sale of Alex Jones' controversial media platform, Infowars, to satirical news outlet The Onion. The decision came after Jones alleged collusion during a recent bankruptcy auction.
The Onion emerged as the winning bidder on November 14, outbidding a company linked to Jones. However, U.S. Bankruptcy Judge Christopher Lopez’s ruling ensures that Jones retains control of Infowars' Austin-based operations. The satirical outlet had planned to transform Infowars into a parody site by January and remove Jones from its operations.
During a two-day hearing in Texas, Judge Lopez criticized the auction process as flawed, suggesting it failed to maximize financial recovery for the families of the 2012 Sandy Hook Elementary School shooting victims. He emphasized the importance of securing every possible dollar for the families, stating, “You’ve got to scratch and claw and get everything you can for them.”
Troy Moser
Auction Disputes and Ruling Details
The Onion offered 1.75 Million in-cash,alongside other incentives, while First United American Companies, a Jones-affiliated entity, bid 3.5 Million.
Despite The Onion’s lower cash offer, it included a pledge by many Sandy Hook families to relinquish $750,000 of proceeds in favor of other creditors, potentially providing more value overall.
Judge Lopez acknowledged issues with the auction process but found no evidence of wrongdoing. He left the decision on next steps to the auction’s trustee, Christopher Murray. While defending The Onion’s bid, Murray testified that it was significantly more favorable overall despite the lower dollar amount.
Jones, however, condemned the process during a broadcast from his Austin studio, calling it fraudulent and accusing The Onion of misconduct. Both the trustee and The Onion denied the allegations, attributing Jones’ criticism to “sour grapes.”
Background on the Bankruptcy Case
The sale of Infowars stems from Alex Jones’ personal bankruptcy filing in late 2022. Jones faced nearly $1.5 billion in defamation judgments after falsely claiming the Sandy Hook school shooting was a hoax. Families of the victims testified about the trauma caused by his conspiracy theories and the threats they faced from his followers.
The proceeds from the eventual sale of Infowars, along with Jones’ other personal assets, are intended to compensate Sandy Hook families and other creditors.
Future of Infowars
Assets included in the auction encompassed Infowars’ studio equipment, websites, social media accounts, video archives, and product trademarks. Jones has reportedly prepared alternative platforms in case he loses control of Infowars, ensuring his ability to continue broadcasting.
Following the auction, The Onion’s CEO, Bell Collins, announced plans to reimagine Infowars as a satirical platform, collaborating with notable figures from The Onion and Clickhole. The relaunch was set to feature Everytown for Gun Safety as its exclusive advertiser.
Despite the ruling, Jones remains defiant, appealing the $1.5 billion defamation judgment on free speech grounds. For now, Infowars will remain under Jones' control, while the case continues to unfold.
POSTED ON 12/12/2024 - LAST UPDATED ON 12/12/2024
