The Onion’s successful bid to acquire the assets of Alex Jones’ Infowars, which went bankrupt under a Chapter 7 liquidation, is currently undergoing an evaluation process. A bankruptcy judge in Texas has paused the transfer of Infowars and scheduled an evidentiary hearing for next week to investigate the auction results.
Infowars, along with its parent company, Free Speech Systems LLC, filed for bankruptcy in 2022 following a $1.4 billion ruling against Jones from the families of Sandy Hook shooting victims, due to his defamatory claims regarding the tragedy. The Onion’s bid garnered support from these families, who chose to forgo part of their financial recovery to enhance the value of The Onion’s offer.
Ben Collins, the CEO of The Onion’s parent company, confirmed that their joint bid with the Connecticut families has been chosen as the winning bid, pending the completion of standard procedures.
During a court hearing, concerns were raised about the secrecy surrounding the auction process. Other bidders criticized the sealed bidding format, which kept the terms of offers confidential. Although another company, First United American Companies, placed a higher cash bid of $3.5 million, the winning bid was deemed superior because it provided better outcomes for creditors, largely due to the Sandy Hook families’ willingness to waive part of what they were owed by Jones.
Judge Christopher Lopez expressed his commitment to transparency throughout the process and called for a thorough review of the bidding procedure, emphasizing the importance of maintaining a fair process over simply determining a winner.
In an unusual turn, following the announcement of The Onion as the winning bidder, the Infowars website briefly took down its content but has since returned online. The Onion plans to relaunch Infowars in January 2025, reimagined as a parody of far-right media, aiming to replace the previous outlet’s disinformation tactics with humor.
This acquisition could potentially mark a shift in the landscape of online media, allowing satire to take over from the contentious atmosphere previously dominated by conspiracy theories. The Onion’s unique approach may offer a space for critical commentary on misinformation while engaging audiences in a humorous way.
In conclusion, while there are uncertainties around the auction outcomes, the attention it has garnered may ultimately lead to more significant conversations about media integrity, the consequences of misinformation, and the role of humor in critiquing far-right narratives.