(Bloomberg Law) -- The Onion lost its bid to acquire the assets of right-wing provocateur Alex Jones’ Infowars platform.
In shutting down the sale, Houston bankruptcy Judge Christopher M. Lopez at a hearing Tuesday said he had concerns that the transparency of the sealed bid auction process didn’t maximize value for all creditors.
“I think it’s clear the trustee left a lot of money on the table,” Lopez said.
The decision makes next steps unclear but means another bidder could acquire the assets. The Onion, in a statement posted by CEO Ben Collins to his social media accounts, said the satirical news site will continue to try to find a way to buy InfoWars “in the coming weeks.”
Lopez upheld objections from Jones and a losing bidder. The opponents of the sale cited concerns over the transparency of a bankruptcy court auction and the structure of The Onion’s bid.
The decision means Jones could maintain control over the platform he’s been broadcasting conspiratorial right-wing content on for roughly 25 years. It also represents a major loss for the families of the Sandy Hook Elementary School shooting victims, who teamed up with The Onion’s corporate parent, Global Tetrahedron LLC, to boost the value of the bid.
The families hold more than $1.3 billion in judgments against Jones and Infowars’ parent company related to his false statements that the 2012 Connecticut school massacre was a hoax.
Bankruptcy trustee Christopher Murray is liquidating Jones’ estate in bankruptcy to help him pay down those judgments. The trustee picked The Onion’s bid, valued at more then $7 million, over that of First United American Cos. LLC, which bid $3.5 million but offered a larger cash component than The Onion’s. First United, a company Jones has said he’s “very familiar” with, also objected to The Onion’s takeover.
The Onion said it was disappointed “that everyone was sent back to the drawing board with no winner, and no clear path forward for any bidder,” but that it “will continue to seek a resolution that helps the Sandy Hook families receive a positive outcome for the horror they endured.”
Jones, broadcasting live on his Infowars platform after the hearing, declared victory to his viewers.
“It’s like being held underwater and finally getting air,” Jones said.
First United aimed to continue broadcasting Infowars if it won the auction, the trustee has said in court papers.
The Onion intended to launch a new Infowars platform by January 2025 in conjunction with advocacy group Everytown for Gun Safety by January 2025. Everytown for Gun Safety, which advocates gun-safety measures, is backed by Michael Bloomberg. Bloomberg Law is operated by entities controlled by Michael Bloomberg.
Chris Mattei of Koskoff Koskoff & Bieder PC, an attorney for the families that backed The Onion’s bid, said in a statement that the judge’s rejection is a disappointment.
“These families, who have already persevered through countless delays and roadblocks, remain resilient and determined as ever to hold Alex Jones and his corrupt businesses accountable for the harm he has caused,” Mattei said. “This decision doesn’t change the fact that, soon, Alex Jones will begin to pay his debt to these families and he will continue doing so for as long as it takes.”
Jones is represented by Jordan & Ortiz PC and Broocks Law Firm PLLC. The Chapter 7 trustee is represented by Jones Murray LLP and Porter Hedges LLP. Global Tetrahedron is represented by Seward & Kissel LLP. The Sandy Hook families are represented by Cain & Skarnulis PLLC, Koskoff Koskoff & Bieder PC, and Paul Weiss Rifkind Wharton & Garrison LLP. X Corp. is represented by Latham & Watkins LLP.
The case is Jones, Bankr. S.D. Tex., No. 22-33553, hearing 12/10/24.
To contact the reporter on this story: James Nani in New York at jnani@bloombergindustry.com
To contact the editors responsible for this story: Maria Chutchian at mchutchian@bloombergindustry.com; Rob Tricchinelli at rtricchinelli@bloombergindustry.com
(Updates with comments from The Onion, Jones, and a Sandy Hook families attorney.)
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