Temporary Setback for The Onion's Infowars Acquisition

The satirical publication's effort to take control of Alex Jones's conspiracy platform faces an obstacle.

Last November, The Onion, known for its satirical content, was the winning bidder in a bankruptcy auction to acquire Infowars, a site notorious for its anti-government conspiracy content. However, their victory was short-lived as a federal bankruptcy judge recently halted the purchase. The judge cited a lack of transparency in the auction process and insufficient financial return.

The future of Infowars, which was created by the controversial Alex Jones, hangs in the balance. This site has become infamous for disseminating false narratives on major events like the September 11 attacks, the Boston Marathon bombing, and the Sandy Hook school tragedy. Moving forward, The Onion might be able to finalize its acquisition, or Alex Jones might devise a method to keep control. Alternatively, the decision could rest with the trustee handling the case.

Collaborative Bid by The Onion

To support its bid, The Onion's parent company, Global Tetrahedron, joined forces with relatives of the Sandy Hook victims, who have directly faced Infowars' conspiracy assaults. The initiative aimed to halt Infowars’ disinformation campaign tailored to profit from supplement sales, replacing it with The Onion's brand of satirical humor.

In a recent announcement, CEO Ben Collins of The Onion reaffirmed the publication’s objective to acquire Infowars. He emphasized seeking a resolution that benefits the Sandy Hook families after the tragic events they suffered.

Infowars’ Journey and Future Prospects

Since its inception in 1999, Infowars has been a hub for extreme right-wing theories, often focusing on significant national tragedies. The website put forward baseless theories such as the claim 9/11 was orchestrated internally and that the 2011 shooting of Congresswoman Gabby Giffords was part of a government plot.

Through his website, radio, and online shows, Alex Jones has played a pivotal role in propagating conspiracies in conservative media circles. One of his most damaging claims followed the Sandy Hook shooting, where he falsely alleged the incident was faked, and the grieving parents were merely actors. He insisted such events were staged to enforce stricter gun policies.

These fabrications led to severe harassment towards the families impacted by Sandy Hook, leading them to file defamation suits against Jones. A court ruled in 2022 that Jones owed these families $1.5 billion in damages due to the distress caused by his false claims.

The same year, Jones sought bankruptcy protection for himself and his business, Free Speech Systems, which operates Infowars. The court tasked him with liquidating assets to start compensating the Sandy Hook families. Consequently, an auction for Infowars was sanctioned in September.

November's auction saw two contenders: The Onion and First United American, the latter acting as a proxy for Jones, specializing in nutritional supplements. The Onion's bid totaled $1.75 million, inclusive of extra assets, whereas First United American offered $3.5 million in cash. Upon evaluation, trustee Christopher Murray deemed The Onion’s offer significantly more valuable, amounting to approximately $7 million, considering assets like Sandy Hook families forgoing part of their potential earnings.

The judge emphasized that the auction failed to maximize beneficiary returns because bids were not transparently competitive—it relied on sealed bidding, shrouding the process in secrecy.

In response, Murray is now tasked with devising an alternative solution since another auction is not anticipated.

The fate of Infowars now hinges on whether The Onion can transform it into a platform blending satire with responsible journalism, as envisioned by Collins, or if any Jones-affiliated entity can preserve its status quo. Another potential outcome is that the families of Sandy Hook victims could end up with Infowars as part of pending settlements. Should The Onion succeed in acquiring it, they plan to integrate Everytown for Gun Safety as the platform's exclusive advertiser.