© Andrew Caballero-Reynolds / GettyThe Onion's purchase of InfoWars has been put on hold following concerns by the bankruptcy judge.
Well, it turns out that The Onion's
acquisition of InfoWars is not a done deal. Following an auction process on Thursday that drew headlines across the media landscape for its absurdity, the Texas judge overseeing the bankruptcy sale has
raised questions about how the sale was conducted. A hearing has been called for next week to review the auction process.
InfoWars is a fringe, right-wing website founded in 1999 and operated by conspiracy theorist Alex Jones. The organization was shuttered on Thursday following the conclusion of the auction, but has since relaunched after Judge Christopher Lopez paused the sale.
Jones was found guilty of defamation after repeatedly claiming that the 2012 Sandy Hook Elementary School shooting was a hoax, leading families who lost children in the tragedy to face significant harassment. He was ultimately ordered to pay almost $1.5 billion in damages following lawsuits in both Texas and Connecticut. Jones has since conceded that the shooting did occur.
"Journalists" like Jones are allowed a lot of freedoms in the United States, but they have to believe with
evidence that what they're saying is true or else they open they open themselves up to liability. Jones did not have evidence to support the idea that parents in the Sandy Hook shooting were crisis actors, and a judge ultimately ruled he knowingly lied.
"We're all going to an evidentiary hearing, and I'm going to figure out exactly what happened," the judge reportedly said about the auction process, according to the Associated Press. "No one should feel comfortable with the results of this auction."
At the center of Judge Lopez's skepticism seems to be the fact that
The Onion's cash bid was less than that of First United American Companies, an organization that appears to operate Jones' cash-making supplement business. InfoWars is persona non grata to most advertisers, but the website has pulled in tens of millions of dollars
per year in sales of supplements with names like "Brain Force Ultra" and "Survival Shield X-2."
First United American Companies offered a reported $3.5 million for InfoWars, which was higher than
The Onion's cash offer, presumably with the intent of allowing Jones to continue broadcasting his daily news show. But the trustee overseeing the bankruptcy auction, Christopher Murray, said in court that The Onion's bid was the best despite having a lower cash amount because the satirical news organization had teamed up with families of the Sandy Hook shooting, who would forgo some damages from their successful defamation case against Jones to support the bid.
In a statement to
Gizmodo, Ben Collins, CEO of The Onion said, "The joint bid from Global Tetrahedron and the Connecticut families has been selected as the winning bid for InfoWars. The sale is currently underway as part of the standard processes." Global Tetrahedron is the parent company of
The Onion.
It's still unclear what the structure of The Onion's offer looked like, or how it was better than First United's cash bid. First United's attorneys told the judge on Thursday that the trustee changed the auction process only days before, omitting a final round that would have given them another chance to outbid
The Onion.
After
The Onion won the initial auction on Thursday, it said it would relaunch InfoWars as a "relentless barrage of humor for good."
Thomas Maxwell is a business and technology reporter. He previously worked at
Business Insider, where he covered big tech companies including Google and Meta. You can follow Thomas on X/Twitter
@tomaxwell, or contact him securely via Signal @mothybot.66.
Comment: Whelp, apparently someone forgot to get a gag order for Alex. Good thing, there's a lot more going on than the article outlines: