Dec 10, 2024, 9:09 AM
Dec 10, 2024, 5:27 AM

The Onion's controversial bid for Infowars faces court scrutiny

Highlights
  • A bankruptcy judge in Texas is evaluating The Onion's $1.75 million bid for Alex Jones' Infowars assets.
  • Jones and his associated company have accused The Onion of fraud and are questioning the legitimacy of the auction process.
  • The outcome of the court hearing will determine the future of Infowars and how proceeds will be allocated to fulfill judgments against Jones.
Story

In a Texas courtroom, U.S. Bankruptcy Judge Christopher Lopez is reviewing the bid submitted by The Onion to purchase Alex Jones' Infowars platform. The Onion's bid, which was made during an auction concluded on November 14, 2023, was valued at $7 million due to the pledge from several Sandy Hook families to forgo some auction proceeds for other creditors. This legal process follows Jones' personal bankruptcy filed in late 2022, which stemmed from a court ruling that ordered him to pay nearly $1.5 billion in defamation lawsuits related to the Sandy Hook tragedy. Jones, the controversial conspiracy theorist, faces allegations of fraud and collusion regarding the auction process. His competing bid from First United American Companies, which totaled $3.5 million, has raised questions about the legitimacy of The Onion's lower bid. During the hearings, testimony has focused on the auction's valuation process and the absence of a live auction. Jones and First United American Companies assert that The Onion's bid should not be considered valid, claiming their higher bid was disregarded improperly. The Onion, known for its satirical take on news, aims to turn the Infowars platform into a parody. The hearing saw substantial legal arguments regarding the auction's execution and its fairness, with Jones’ legal team challenging the value attributed to The Onion’s bid. Specifically, the president of ThreeSixty Asset Advisors, Jeff Tanenbaum, was heavily questioned regarding the inflated valuation determined in the absence of a live auction. Amidst this contentious backdrop, Jones maintains active operations through different studio setups and websites as he prepares for potential outcomes that may affect his control over Infowars. The outcome of this court case will significantly impact the distribution of proceeds, expected to aid the families affected by his past statements regarding the Sandy Hook tragedy. As the court weighs its options, including potentially voiding The Onion's bid or conducting another auction, all eyes remain on the future of Infowars and its assets in this unusual bankruptcy proceeding.

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