A trustee overseeing the Infowars bankruptcy auction told a judge Tuesday that he chose The Onion’s bid for the conspiracy-filled platform. Because it’s so much better than the only offer I got from the Alex Jones family of companies.
Director Christopher Murray testified on the second day of hearings in which a judge scrutinized Murray’s decision to name the satirical news outlet’s bid as the winning bidder following a November auction that Jones alleged was linked to fraud and collusion.
Referring to The Onion, Murray testified that “only two people bid… and one was better than the other.” When asked how much he had improved, he replied, “A lot.”
It’s unclear how quickly U.S. Bankruptcy Court Judge Christopher Lopez in Houston will rule. Testimony Tuesday was expected to take place in the evening.
The Onion, which wants to parody Infowars’ website and social media accounts, offered $1.75 million in cash and other incentives for Infowars’ assets in an auction that ended Nov. 14. Jones bid $3.5 million for First United American Companies, which operates a website under the name Selling nutritional supplements.
The Onion’s cash offer was lower than First United American’s, but it also included a pledge from many Sandy Hook families to give up $750,000 of the auction proceeds and provide more money to other creditors. They will receive it based on First United American’s bid.
Lopez may ultimately decide whether to void The Onion’s bid, name a Jones-affiliated company the winner, or hold another auction.
Jones did not attend the proceedings, instead broadcasting from his studio in Austin.
“I can’t imagine a judge would recognize this fraud,” Jones said on his show Tuesday. “What I mean is, what they did and what they claimed is confusing.”
The trustee and The Onion deny the claims by Jones and company and accuse them of being sour grapes.
If The Onion wins, Jones expects to be kicked out of Infowars studios and its web and social media platforms.
The sale of Infowars is part of Jones’ personal bankruptcy case, filed in late 2022 after he was ordered to pay about $1.5 billion in defamation lawsuits filed in Connecticut and Texas by relatives of Sandy Hook Elementary School shooting victims. This is a bankruptcy case.
Jones has repeatedly denounced the 2012 shootings that killed 20 children and six educators, saying they were a hoax staged by actors and aimed at strengthening gun laws. Many of the victims’ parents and children testified in court that they were traumatized by Jones’ plot and threats from his followers.
Jones later admitted that the Connecticut school shooting occurred.
Most of the proceeds from the sale of Infowars, as well as most of Jones’ personal assets, will go to the Sandy Hook family. Some of the proceeds will go to Jones’ other creditors.
Murray testified that he did not favor one bidder over another and was not biased.
He also said First United American recently submitted a revised bid, but was unable to accept it due to opposition from the Sandy Hook family in the Connecticut lawsuit.
The Onion valued the bid, along with the Sandy Hook family’s offer, at $7 million. Because that amount was equal to the purchase price which gave the same amount to other creditors.
In a court filing last month, Murray’s attorneys called First United American’s request to disqualify The Onion from bidding “an inappropriate attempt by a disappointed bidder to influence a fair and open election process.”
Murray’s attorney questioned him Tuesday afternoon. Attorneys for Jones and First United American cross-examined him later Tuesday.
During opening arguments Monday, Jones’ attorney Ben Broocks said there was no way The Onion should have been chosen over First United American.
“How does a $1.75 million bid beat a $3.5 million bid?” he asked. “How is $1.75 million bigger? Well, in one expression, voodoo economics.”
On Monday, auctioneer Jeff Tanenbaum defended both the value and selection of the bid.
All equipment and other assets from the Austin-based Infowars studio were sold, as well as rights to social media accounts, websites, video archives and product trademarks. Jones uses the studio to broadcast shows filled with far-right conspiracy theories through his accounts on the Infowars website, social platform X and radio stations.
Jones created another studio, website and social media accounts in case The Onion gets approved to buy Infowars and ousts him. Jones said he can continue to use the Infowars platform if the auction winner is friendly to him.
Jones is appealing the $1.5 billion verdict on free speech grounds.
