Judge rejects Infowars sale to Onion amid legal battle

Judge blocks Onion’s bid for Infowars, citing collusion claims and disputes over bidding process.

What happens when a satirical publication vies to acquire a site founded by a conspiracy theorist? A federal judge in Houston has rejected the sale of Alex Jones’ Infowars to The Onion, prolonging a contentious legal battle over the controversial website’s ownership.

Infowars, created by Jones, became entangled in bankruptcy proceedings following a $1.4 billion defamation judgment won by the families of Sandy Hook shooting victims in 2022. The Onion’s parent company, Global Tetrahedron, made a $7 million bid to acquire the site, backed by $1.75 million in cash and additional contributions from the Sandy Hook families. These families had pledged a portion of their potential compensation to support the bid. Jones’ affiliate, First United American Cos., countered with a $3.5 million cash bid. Despite offering more upfront cash, their overall bid value was deemed inferior by Jeff Tanenbaum, an expert advising the court-appointed trustee overseeing the sale.

The sale process faced criticism from Jones and his legal team. They alleged improper conduct, including collusion between Global Tetrahedron and the Sandy Hook families. Additionally, Jones argued the use of sealed bidding, rather than an open auction, undermined fairness and transparency. Lawyers for the trustee and Global Tetrahedron defended the process, asserting it adhered to legal protocols. Tensions escalated during the hearings, with Jones’ representatives questioning the financial resources of the Sandy Hook families. Meanwhile, Jones hosted a dramatic live broadcast on social media, inaccurately claiming Infowars was being sold to billionaire Michael Bloomberg.

Judge Christopher Lopez ultimately ruled against the sale, citing concerns about the process and leaving The Onion’s acquisition plans in limbo. The decision prolongs uncertainty over Infowars’ future ownership. The ruling underscores the complexities of bankruptcy sales, particularly in high-profile and emotionally charged cases. As legal battles continue, the fate of Infowars remains unresolved.