Judge Blocks Purchase of Infowars by The Onion: Consumer Alert

A recent ruling by a bankruptcy judge has put a halt to The Onion’s attempt to acquire Alex Jones’ Infowars platform. The judge expressed concerns about the auction process, stating that it did not fully maximize the value of the sale.

The satirical news site, The Onion, had won the bidding for Infowars’ parent company, Free Speech Systems, in a defamation settlement. The bid was supported by families of Sandy Hook Elementary School shooting victims and a first responder. The Onion offered $1.75 million in cash, with additional support from the families, valuing the bid at $7 million. The only other competing bid, at $3.5 million, came from a company affiliated with Alex Jones.

The court-appointed trustee initially planned a live auction but later changed it to sealed bids. After The Onion was declared the winner, Jones and his company sued, claiming the auction was flawed. The judge expressed concerns about the handling of the auction process and suggested that more money could have been secured if not for the flaws in the process.

While the judge acknowledged that all parties acted in good faith, he believed that there was potential for more negotiation and higher bids if the process had been more transparent. The trustee was encouraged to maximize the sale value and ensure that every dollar was accounted for.

Jones, who was ordered to pay a significant sum to the Sandy Hook shooting victims, has yet to fulfill that judgment. Despite ongoing expenses, including thousands of dollars spent monthly, he has not paid the settlement amount.

This ruling serves as a reminder of the importance of transparency and fairness in auction processes, ensuring that all parties have equal opportunities to make competitive bids.