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The Onion Won the InfoWars Auction—but Never Bought It

The Onion won the 2024 auction for InfoWars parent Free Speech Systems’ assets, but the sale was rejected. A later licensing proposal also remained blocked in the latest located court update.
From TheFinanceBase Team2 min to read
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The Onion was named the winning bidder for InfoWars parent Free Speech Systems’ assets in a November 2024 bankruptcy auction, but a bankruptcy judge rejected the sale the following month. A separate proposal in 2026 to license InfoWars intellectual property was blocked by court orders; on September 9, 2026, the Texas Supreme Court declined to lift those orders. The latest located status report is from that date, so it does not establish whether anything changed afterward.

How the auction differed from the later license proposal

Route What was proposed Process Outcome in the latest located report
2024 asset sale Assets of Free Speech Systems, InfoWars’ parent company Bankruptcy auction The Onion was named winning bidder, but the bankruptcy judge rejected the sale in December 2024.
2026 intellectual-property license Temporary use of InfoWars intellectual property, not a purchase of the company A court-appointed receiver was to license the IP to an Onion affiliate, War Is Over LLC, subject to court proceedings A Texas appellate stay blocked the proposed transfer, and the Texas Supreme Court left the blocking orders in place on September 9, 2026.

What happened in the 2024 bankruptcy auction

In November 2024, The Onion was identified as the winning bidder for assets belonging to Free Speech Systems. The auction was part of bankruptcy proceedings connected to defamation judgments against Alex Jones. Being the winning bidder did not itself transfer the assets: in December, the bankruptcy judge rejected the sale, citing concern that the auction process had not produced the best possible bids.

That ruling meant the proposed auction sale to The Onion was not approved. It did not establish that The Onion had acquired InfoWars or its parent’s assets.

What the 2026 licensing proposal involved

In April 2026, War Is Over LLC, an Onion affiliate, proposed licensing InfoWars intellectual property from the court-appointed receiver. Bloomberg Law reported proposed terms of $81,000 per month for six months. Those were reported terms of a proposal, not evidence that a license was completed, that payments were made, or that the affiliate began operating InfoWars.

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This was a different legal route from the rejected bankruptcy sale. It concerned temporary use of intellectual property rather than buying the company’s assets at auction.

Why the proposed transfer remained blocked

On April 30, 2026, a Texas appellate court temporarily blocked the proposed transfer while litigation continued. On September 9, the Texas Supreme Court denied requests by Sandy Hook families to dissolve the lower-court orders that prevented the receiver from assuming control and licensing the intellectual property to The Onion. That decision left the blocking orders in place; it should not be described as approval of the license.

The available status reporting reaches September 9, 2026. It does not establish whether a later order, settlement, receiver action, or operational change altered the situation by October 8, 2026.

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How the defamation judgments fit in

The bankruptcy and asset-collection efforts arose amid attempts to satisfy defamation judgments against Jones. In a separate development in August 2026, a Texas appeals decision reduced a Texas defamation judgment, while the Associated Press reported that a separate Connecticut judgment remained. Those judgment appeals are background to the collection context; they do not decide whether the proposed InfoWars license can proceed.

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