A U.S. bankruptcy court has halted the controversial sale of Alex Jones’ media empire, Infowars, to satirical outlet The Onion. Judge Christopher Lopez ruled late Tuesday that the auction process was unfair and failed to maximize the value of the assets, leaving the future of Infowars in limbo.
The sale had initially appeared to go in favor of The Onion, which placed a bid of $1.75 million for Infowars’ assets, including its studio, website, and social media accounts. However, First United American Companies, a group reportedly allied with Alex Jones, submitted the highest bid of $3.5 million.
Despite offering less money, The Onion was declared the winning bidder. Judge Lopez criticized the auction’s lack of transparency and stated that the process unfairly discounted competing bids.
“I don’t think it’s enough money,” Lopez said of The Onion’s bid during a late-night ruling. “I’m going to not approve the sale.” He added that the trustee overseeing the auction, Christopher Murray, failed to ensure a fair process, particularly by not allowing rival bidders a chance to improve their offers.
The judge left the next steps in the hands of Murray, who now faces the decision of whether to hold a new auction.
Another wrinkle in the case comes from Elon Musk’s X Corp. (formerly Twitter), which has objected to the sale or transfer of Infowars-related accounts on the platform. X Corp. filed an official objection last month, asserting that its Terms of Service (TOS) prohibit the transfer of account licenses without its consent.
The objection outlines that while account holders own the content they post, the platform itself retains ownership of the service, which is non-assignable under both the TOS and applicable law. This means Infowars’ accounts on X, including those of Alex Jones, cannot legally be sold or transferred.
X Corp.’s filing stated, “The Trustee cannot sell, assign, or otherwise transfer such license absent X Corp.’s consent.” The platform’s intervention could further complicate any future sale of Infowars’ digital presence.
Adding another layer of complexity, the bid from The Onion reportedly included financial assistance from the families of Sandy Hook Elementary School shooting victims. Jones owes these families over $1 billion in damages after being found liable for defamation over false claims that the 2012 massacre was a hoax.
According to an Associated Press report, the families agreed to forego a portion of what they are owed, effectively bolstering The Onion’s offer. This move underscored the families’ commitment to ensuring that Jones no longer profits from spreading harmful conspiracy theories.
Jones and his Infowars team reacted to the ruling with relief and defiance. Owen Shroyer, a prominent Infowars personality, took to X, proclaiming, “Infowars lives on!” Alex Jones himself broadcasted live on his platform, framing the ruling as a victory against what he called an “attack on the First Amendment.”
Jones, who has faced mounting legal and financial troubles, remains a polarizing figure.
Judge Lopez’s decision leaves the future of Infowars uncertain. The possibility of a new auction looms, with potential bidders needing to navigate legal challenges and public scrutiny.
Whoever ultimately gains control of Infowars will acquire its physical and digital assets but may also inherit its contentious legacy. The platform remains a symbol of the cultural and political divides in the U.S., and its sale has drawn interest from a wide range of stakeholders.
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