A federal bankruptcy judge has halted the satirical news outlet The Onion from acquiring Alex Jones’ controversial Infowars website, citing concerns over the auction process. According to The Houston Chronicle, Judge Christopher Lopez’s ruling came late Tuesday, following two days of testimony in Houston’s Bob Casey Federal Courthouse.
The auction, part of Jones’ bankruptcy proceedings, was intended to help repay creditors after a series of defamation lawsuits resulted in a $1.4 billion judgment against the right-wing conspiracy theorist.
The auction attracted only two bidders. The Onion’s parent company, Global Tetrahedron LLC, outbid First United American Companies LLC, a group tied to Jones’ ShopAlexJones.com website.
Jones had filed for a restraining order attempting to block the sale of his Infowars media platform after The Onion, backed by families of Sandy Hook Elementary victims, won the bidding for Jones’ company bankruptcy auction.
According to the Austin American-Statesman, attorneys for Jones filed for a restraining order and a temporary injunction on the sale of Free Speech Systems and Infowars, arguing The Onion and the families used a “flagrantly non-compliant Frankenstein bid” to win the auction for his media platform.
Judge Lopez sided with Jones, stating the auction through which the Onion bought Infowars was confusing and potentially left money on the table.
“I need you guys to try to go out and get every dollar,” Lopez said.
Global Tetrahedron’s bid included $1.75 million in cash and a revenue-sharing plan, waiving potential proceeds to prioritize Jones’ unsecured creditors. This bid was valued at over $7 million when factoring in potential future revenue. Meanwhile, First United American Companies’ $3.5 million cash offer lacked similar revenue-sharing provisions.
Lopez sided with objections raised by Jones and First United, which criticized the auction’s sealed-bid process and post-bid negotiations as unclear and potentially unfair.
According to The Houston Chronicle, Jeff Tannenbaum, whose company conducted the auction, testified that the sealed-bid format encouraged higher offers from participants. Bankruptcy Trustee Christopher Murray, defended his decision to accept The Onion’s bid, emphasizing its potential to maximize returns for creditors, despite resulting in less immediate cash flow.
Lopez’s decision does not immediately grant Infowars to First United nor order a new auction but requires Murray to reevaluate and propose a revised plan.
Jones, who owes hundreds of millions to creditors, filed for bankruptcy following defamation lawsuits over his claims that the 2012 Sandy Hook Elementary School shooting was a hoax. The tragedy left 26 dead, including 20 children.
