InfoWars sale to The Onion still on hold: Judge – Washington Examiner
A federal bankruptcy judge has not yet approved the sale of Alex Jones’s media company, Infowars, to the satirical publication The Onion. The delay follows a contentious auction where The Onion was the winning bidder, but objections from competitors might lead to an evidentiary hearing next month. The auction is linked to compensation for families of Sandy Hook victims, who won significant defamation judgments against Jones for falsely claiming the shooting was a hoax. The judge indicated that the hearing would allow for a fair examination of the bidding process, especially noting a challenge from another firm that claims to have made a higher cash offer than The Onion’s. However, The Onion’s proposal includes revenue-sharing arrangements, which have garnered support from some Sandy Hook families. The bankruptcy trustee defended the acceptance of The Onion’s bid, arguing it would ultimately benefit the creditors more than the competing offer. If the sale goes through, The Onion plans to relaunch Infowars with a comedic focus. Jones has argued against the auction process, alleging fraud and claiming that his associated company should be the rightful buyer.
InfoWars sale to The Onion still on hold: Judge
A federal bankruptcy judge has still not approved the sale of Alex Jones’s media company, Infowars, to the satirical publication the Onion, signaling that an evidentiary hearing may be held next month to address objections from competing bidders and clarify the process.
Judge Christopher Lopez announced during a hearing Monday that the sale remains in limbo following a contentious auction earlier this month, in which the Onion emerged as the winning bidder. The auction is part of bankruptcy proceedings aimed at compensating families of Sandy Hook Elementary School shooting victims, who won nearly $1.5 billion in defamation judgments against Jones after he falsely claimed the 2012 massacre was a hoax.
“I want a fair and transparent process,” Lopez said, adding that the hearing would allow all parties to present their cases.
At issue is a challenge from First United American Companies, a limited liability firm linked to Jones’ dietary supplement business, which claims it offered a superior bid of $3.5 million in cash — double the $1.75 million cash bid from the Onion. The satirical publication’s offer, however, includes future revenue-sharing arrangements supported by the majority of Sandy Hook families, who are willing to forgo immediate payments to enable greater returns for other creditors.
Bankruptcy trustee Christopher Murray, who managed the auction, defended the decision to accept the Onion’s bid, which he estimated to be worth $7 million. Murray argued that the families’ willingness to participate in a revenue-sharing arrangement made the Onion’s offer more advantageous for creditors overall.
During a prior hearing after the auction, Murray testified that the creditors were “significantly better off” under the Onion’s bid. The judge said the focus of the evidentiary hearing will be on Murray’s business judgment as to how the auction was handled, according to NBC News.
The Onion has faced backlash since the auction’s conclusion, with its lawyers reporting harassment and threats from Jones and his supporters. The satirical outlet plans to relaunch Infowars as “the dumbest website on the internet,” emphasizing parody and humor. The platform is reportedly in talks to host well-known comedians and content creators if the judge clears the sale.
Jones, meanwhile, has called the auction “fraudulent” and claimed that Elon Musk and President-elect Donald Trump are investigating the process. He filed a motion last week to disqualify the Onion’s bid, asserting that his affiliated company should be the rightful buyer.
Musk’s X Corp. has also filed a “limited objection” in court pertaining to a plan to sell Jones’s X handle, @RealAlexJones, as part of the auction.
“X Corp. is compelled to file this Objection to make clear that X Corp. does not consent to the sale or any other transfer of the non-assignable X Accounts, which in turn, means the X Accounts cannot be sold or transferred at this time,” X’s attorneys said in a court filing on Monday.
The hearing is expected to scrutinize the trustee’s judgment in selecting the Onion’s bid, potentially setting the stage for a high-profile decision on the fate of one of the internet’s most controversial platforms.
If Infowars is ultimately sold to the Onion, Jones has said he will utilize a new account known as the Alex Jones Network or @AJNlive to publish his content.
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