The Onion’s Bid to Acquire Infowars Delayed Amid Legal Battles

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A bankruptcy judge delayed a crucial hearing on Monday, stalling Alex Jones’ efforts to block The Onion from acquiring Infowars. The decision leaves the auction outcome uncertain for now.

Jones alleges the auction was rigged with fraud and collusion, favoring The Onion over a competing bidder linked to him. The trustee overseeing the auction denies these claims, accusing Jones of trying to discredit the process because he disliked the result.

U.S. Bankruptcy Judge Christopher Lopez postponed the emergency hearing to Dec. 9 or Dec. 17. On those dates, he will also address the trustee’s request to finalize the sale of Infowars to The Onion. Lopez combined the hearings to streamline the process.

“I want a fair and transparent process. Let’s see where it leads,” Lopez said.

What’s at Stake

The judge could approve The Onion’s purchase, order a new auction, or award the sale to the other bidder. The decision will determine if Jones remains in Infowars’ Austin, Texas, studio under a favorable owner or gets evicted by The Onion.

The competing bidder, First United American Companies, operates a website using Jones’ name to sell nutritional supplements.

Jones continues to broadcast from the Austin studio but has set up backup facilities, websites, and social media accounts. Last week, the trustee briefly shut down the studio and Infowars’ websites after naming The Onion as the winning bidder. Operations resumed the next day, escalating Jones’ complaints.

Auction and Bankruptcy Background

Jones filed for bankruptcy after courts ordered him to pay nearly $1.5 billion to Sandy Hook families. The lawsuits arose from his false claims that the 2012 shooting, which killed 26 people, was staged to promote gun control.

Proceeds from the auction will go to Jones’ creditors, including the Sandy Hook families.

Judge Lopez previously ruled that $1.1 billion of the damages cannot be discharged in bankruptcy. On Monday, he rejected a request to make the entire $1.5 billion non-dischargeable.

Jones Challenges Auction Process

Jones accuses The Onion of colluding with the Sandy Hook families and the trustee to win the auction. First United American Companies offered $3.5 million, while The Onion bid $1.75 million. However, The Onion also pledged to direct $100,000 more to other creditors by waiving some of the Sandy Hook families’ proceeds.

The trustee, Christopher Murray, defended The Onion’s bid as better for creditors.

Jones and First United American Companies argue the bid violated auction rules by involving multiple parties and lacking a clear monetary value. They also criticize Murray for canceling a planned live bidding round and choosing between sealed bids instead.

Jones called the auction “rigged” and “fraudulent” on his show, which airs on Infowars’ website, radio, and his X account. Last week, he filed a countersuit against Murray, The Onion’s parent company, and the Sandy Hook families.

In court documents, Murray dismissed Jones’ claims as false and labeled his actions a smear campaign to delay the sale. He also accused Jones of working with First United American Companies to secure the platform.

Infowars auction faces delays, legal disputes, and uncertain outcomes. December hearings hold the answers.

What’s for Sale

The auction includes Infowars’ studio, video archives, production equipment, trademarks, websites, and social media accounts. Another auction for remaining assets is set for Dec. 10.

On Monday, lawyers for X objected to selling Jones’ and Infowars’ accounts, claiming X owns the accounts and has not approved any sale. Judge Lopez will decide if Jones’ personal X account, with 3.3 million followers, should be included in the liquidation.

Jones praised X owner Elon Musk on his show and suggested Musk buy Infowars. Musk has not responded but reinstated Jones’ X account in December 2023 after it was banned in 2018 for abusive behavior.

Next Steps

Jones is appealing the $1.5 billion judgment, arguing free speech rights. He has admitted the Sandy Hook shooting happened.

Besides Infowars’ assets, Jones is selling personal property, including real estate, firearms, and other belongings. Court documents show Jones holds about $9 million in assets, while Free Speech Systems has $6 million in cash and $1 million in inventory.

The next hearings will decide if The Onion gains control of Infowars or if the auction process starts over.

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