A U.S. bankruptcy judge on Tuesday rejected The Onion's attempt to acquire Alex Jones's far-right media platform Infowars, citing flaws in the auction process and insufficient bids to satisfy creditors. The decision marked a significant setback for The Onion's parent company, Global Tetrahedron, which had aimed to transform the conspiracy-driven platform into a hub for satirical content.
Judge Christopher Lopez of the Houston bankruptcy court ruled that the auction, overseen by court-appointed trustee Christopher Murray, lacked transparency and failed to maximize the value of Jones's assets. "I think you've got to go out and try to get every dollar," Lopez stated during his ruling. "The process fell short."
Infowars's assets, including its website, intellectual property, and inventory from Jones's nutritional supplements business, are being sold as part of a bankruptcy process to pay $1.2 billion in damages owed to families of the 2012 Sandy Hook school shooting victims. Jones was found liable for defamation after repeatedly claiming the massacre was a hoax.
Global Tetrahedron's bid, valued at $7 million by the trustee, included $1.75 million in cash and a commitment from Sandy Hook families to forgo their share of sale proceeds. The rival bidder, First United American Companies, offered $3.5 million in cash. First United is affiliated with Jones's dietary supplement business and had Jones's backing.
"Cash is cash!" argued Walter Cicack, an attorney for First United, emphasizing the tangible value of their offer compared to the non-cash components of Global Tetrahedron's bid. Judge Lopez agreed, suggesting that a more competitive bidding process could yield better results for creditors. "I don't even think the $3.5 million is enough," he remarked.
The Onion's plan for Infowars included a complete overhaul of its content, replacing conspiracy theories with satirical humor and appointing Everytown for Gun Safety as the platform's exclusive advertiser. Onion CEO Ben Collins expressed disappointment at the ruling but remained committed to pursuing the acquisition. "It is part of our larger mission to make a better, funnier internet," Collins said in a statement.
Jones, who had labeled the auction process as "fraudulent," celebrated the judge's decision on his show shortly after the ruling. "We can celebrate the judge doing the right thing," he told his audience.
Murray defended the auction process in court, asserting that it was conducted in good faith and with the aim of maximizing creditor payouts. However, Judge Lopez criticized the handling of the auction, noting that the process did not sufficiently encourage back-and-forth bidding between the parties. "This should have been opened back up for everyone," he said.
The Sandy Hook families, who partnered with The Onion on the bid, expressed their frustration through their attorney Chris Mattei. "These families, who have already persevered through countless delays and roadblocks, remain as determined as ever to hold Alex Jones accountable for the harm he has caused," Mattei stated. "This decision doesn't change the fact that Jones will begin paying his debt to these families."
Jones's financial troubles stem from multiple lawsuits brought by the Sandy Hook families, who successfully argued that his false claims inflicted emotional and reputational harm. The judgments have left Jones's company, Free Speech Systems, in financial ruin, necessitating the sale of its assets.
The trustee must now determine the next steps in selling Infowars's assets. Options include restarting the auction process or negotiating directly with potential buyers. Lopez's decision leaves the door open for both The Onion and First United to revise their bids and re-enter the fray.
