Summary
A federal judge has delayed approving the sale of Alex Jones’ media company, Infowars, to The Onion, amid disputes over the auction process.
The Onion won with a $1.75 million bid supported by Sandy Hook families, who agreed to forego their share of sale proceeds for future revenue from a revamped Infowars, enabling other creditors to collect more.
However, a competing bidder backed by Jones, First United American Companies, contested the sale, claiming its $3.5 million bid was unfairly rejected.
The judge plans an evidentiary hearing to ensure transparency.
The major reason is that the Parkland families agreed to take a smaller payout as part of the Onion deal. Therefore, it enables more of the creditors to actually get paid (as opposed to the other deal, where the Parkland families would get almost all the money and the rest of the creditors would be left hat-in-hand).