Federal Judge Blocks Onion's InfoWars Bid, Signaling New Scrutiny of Shutdown-Intent Acquisitions

A U.S. bankruptcy judge halted The Onion's November 2024 acquisition of InfoWars, raising questions about how courts will treat bids where the buyer intends to discontinue operations rather than run them. Sandy Hook families, holding $1 billion in judgments against Alex Jones, had backed the deal by forgoing portions of their recovery. The ruling suggests judges may now more carefully examine whether creditor-approved bankruptcy sales prioritizing operational closure over asset preservation warrant the same deference they once received.