A US bankruptcy court has blocked the sale of Infowars to parody news site The Onion, ruling that the auction didn’t yield the best potential bids. At the same time, judge Christopher Lopez rejected claims by Infowars‘ owner, conspiracy theorist Alex Jones, that any “collusion” was involved in the case.
The Onion reportedly outbid competitor First American United Companies, affiliated with a Jones business, for the rights to the site. Though its cash offer was lower, The Onion valued it at $7 million because Sandy Hook families would allow some of the proceeds to be distributed to other creditors.
However, the appeals judge said that the court-appointed bankruptcy trustee made a “good-faith error” by requesting final offers instead of allowing back-and-forth bidding between The Onion and First American. “This should have been opened back up, and it should have been opened back up for everybody,” Lopez said. “It’s clear the trustee left the potential for a lot of money on the table.”
Now, the trustee must work to resolve some of the disputes between creditors before making another attempt to sell Infowars. The trustee, Christopher Murray, said that First American only complained about the process after losing the bid.
Alex Jones was found liable in 2022 for nearly $1.5 billion in damages for spreading conspiracy theories about the 2012 shooting that killed 20 children and six adult staffers. One of the assets put up for sale was Jones’ Infowars site, and The Onion said it received the blessing of the families of the victims to acquire the site. It reportedly planned to transform the site into one with “noticeably less hateful disinformation,” and a gun safety nonprofit reportedly planned to advertise on the rebooted site. Last week, X said that The Onion wouldn’t be given Alex Jones’ Infowars X accounts, opening up a new can of worms about who owns social media handles.
