X Objects to Bankruptcy Sale of Alex Jones, Infowars Assets

Elon Musk’s X Corp. has formally objected to selling or transferring any X accounts maintained by Alex Jones or Infowars at auction.

The Onion claims to have purchased Infowars in a bankruptcy auction earlier this month with plans to turn it into a satire website — but the judge overseeing the case has ordered a hearing into how the satire website won.

According to sources, the Onion was not the actual highest bidder at $1.75 million—Jones’s allies at First United American Companies made the highest bid.

Judge Christopher Lopez of the U.S. Bankruptcy Court in Houston has expressed concerns about the way the auction was conducted, with a rule change that allowed it to go to the non-highest bidder.

“We’re all going to an evidentiary hearing, and I’m going to figure out exactly what happened,” Lopez said at a hearing on Thursday. “No one should feel comfortable with the results of this auction.”

Newsweek reports, “Los Angeles entertainment attorney Tre Lovell said that Lopez may end up blocking The Onion’s purchase of Infowars if the judge rules the sale is not in the best interest of Jones, or if the satirical news publisher is merely trying to make a ‘joke’ out of the bidding process.”

“Jones has a right that his assets not be sold unreasonably as a fire sale or for an illegitimate purpose, but that the process allows the opportunity for bona fide and fair bidding,” Lovell told Newsweek.

“If The Onion’s intent is to make a joke of all this and purposefully seek to ruin the asset at the expense of Jones receiving a more fair and reasonable bid, this would be grounds to disallow the sale.”

The sale includes the Infowars studio, website, and social media accounts.

In a filing made public on Monday, X Corp. objected to transferring any of Jones’ X accounts.

🚨BREAKING: Elon Musk’s X Corp. Objects To The Sale or Transfer of Any X Accounts Maintained By Alex Jones or InfoWars In Court Filing

Full Filing: https://t.co/ECgGxITmqp
Watch Live: https://t.co/qdOYnVGtyz pic.twitter.com/hTauDn1Jva

— Alex Jones (@RealAlexJones) November 25, 2024

The filing states:

In particular, X Corp. objects to the sale, assignment, or transfer of: (a) the Infowars (https://x.com/infowars); (https://x.com/BANNEDdotVIDEO); (b) (c) The the Banned.Video War Room X X account account (https://x.com/WarRoomShow); (d) the Alex Jones X Account (https://x.com/RealAlexJones) (the “Jones X Account”); and (e) any other accounts maintained by FSS or Jones on X (collectively, the “X Accounts”).

Accounts on X are governed by the X Terms of Service (“TOS”).3 Under both the Prepetition TOS and the Current TOS, all right, title, and interest in and to X Corp.’s services, including X Corp.’s various websites, SMS, APIs, email notifications, applications, buttons, widgets, ads, commerce services, and other covered services (collectively, the “Services”) are X Corp.’s “exclusive property.” See Prepetition TOS § 4; Current TOS § 4. X Corp., as the owner of the Services, grants each user “a personal, worldwide, royalty-free, non-assignable and non exclusive license to use the software provided” to use the Services. See Prepetition TOS § 4 (emphasis added); Current TOS § 4 (same). In contrast to the Services, the account holders own the Content (as defined in the TOS) they submit, post, or display on or through the Services; however, the Content is distinct and separate from the Services.

Pursuant to the Successful Bidder Notice, the Sale Motion, and to the extent applicable, the Jones IP Sale Motion, the Trustee now seeks to contravene X Corp.’s TOS by improperly selling or otherwise transferring the X Accounts (which neither Jones nor his bankruptcy estate own) to a third party. While X Corp. takes no position as to the sale of any Content posted on the X Accounts, X Corp. is the sole owner of the Services being sold as part of the sale of the X Accounts. While X Corp. has granted account holders, such as Jones and FSS, a license to use the Services, such license is non-assignable, both under the terms of the TOS and applicable non-bankruptcy law (i.e., as a personal services contract), and the Trustee cannot sell, assign, or otherwise transfer such license absent X Corp.’s consent.

X Corp. is compelled to file this Objection to make clear that X Corp. does not consent to the sale or any other transfer of the non-assignable X Accounts, which in turn, means the X Accounts cannot be sold or transferred at this time.

According to a report from the Associated Press, the purchase was done with “help” from the families of Sandy Hook Elementary School shooting victims. The victims had agreed to give up some of what was owed to them as a credit to boost The Onion’s bid.

The Infowars founder owes them $1 billion in damages after being sued for defamation over former claims that the massacre was a hoax.

Jones has since apologized for the speculation.

The conservative icon has said he will challenge the purchase in court and launched the Alex Jones Network.

LIVE: The Auction To Sell Infowars And Take Alex Jones Off The Air Is Happening Right Now! Tune In As Alex Jones & Crew Break Down The Latest Developments As We Take America Back! https://t.co/312A238lz9

— Alex Jones Network (@AJNlive) November 13, 2024