Judge Rejects The Onion’s Bid for Infowars, Citing Auction Process Flaws

A bankruptcy judge has rejected The Onion’s winning bid for Alex Jones’ Infowars platform, citing concerns about the auction process and the potential for a higher sale price, CNN reports.

Judge Christopher Lopez of the Southern District of Texas ruled on Tuesday that the sale to The Onion, which had been backed by families of Sandy Hook shooting victims, would not be approved.

Judge Lopez stated that while the auction process was well-intentioned, it “simply did not maximize value.” The Onion, through its parent company Global Tetrahedron, had offered a bid valued at $7 million, consisting of $1.75 million in cash and a credit from the Sandy Hook families who agreed to forgo their share of the proceeds. This bid bested a $3.5 million cash offer from First United American Companies, a firm affiliated with Jones.

The judge’s concerns centered on the auction process itself. Initially planned as a live auction, the process was altered to sealed “best and final bids.” This change, along with the unique structure of The Onion’s bid, prompted lawsuits from Jones and First United American Companies, who criticized it as a “Frankenstein” bid. A two-day hearing followed, including witness testimony

While Judge Lopez stated that he had no issue with The Onion’s bid itself and believed all parties acted in good faith, he determined that the auction process failed to generate the highest possible sale price. He believed the trustee “left a lot of money on the table…potential for a lot of negotiation on the table” due to a lack of transparency regarding competing bids.

The ruling leaves the future of Infowars uncertain. Judge Lopez ordered the court-appointed trustee to reassess the situation, expressing doubt about holding another auction in the near future. He stated that he needed more assurance before approving any future sale. Regardless of the outcome, Jones still owes over $1 billion to the Sandy Hook families, a judgment he has appealed.

Reactions were mixed. The Onion’s CEO, Ben Collins, expressed disappointment but reaffirmed the company’s commitment to finding a resolution beneficial to the Sandy Hook families. An attorney for the families expressed similar disappointment, but maintained their determination to hold Jones accountable for the harm caused by his actions on Infowars. Jones himself celebrated the ruling on his show, characterizing the auction as fraudulent.