Infowars Sale to The Onion Rejected by Federal Bankruptcy Judge
www.nytimes.com
The Onion’s bid for the conspiracy website was supported by the families of victims of the Sandy Hook shooting and a nonprofit focused on ending gun violence.

“It seemed doomed almost from the moment they decided to go to a sealed bid,” Judge Lopez said. “Nobody knows what anybody else is bidding,” he added.

  • just_another_person@lemmy.worldEnglish
    253·
    9 hours ago

    It’s technically the law. Bankruptcy procedures are geared to enable the return of the maximum amount of proceeds for the creditors.

    Sealed bid kind of torpedos that I suppose, but considering the shit stain on history that Infowars is, I feel like an exception should have been made here.

    • ricecake@sh.itjust.worksEnglish
      31·
      9 hours ago

      Sealed buds are usually better for that.

      https://www.investopedia.com/terms/s/sealed-bid-auction.asp

      Each party is incentivised to make the highest offer they’re willing to pay from the beginning, as opposed to negotiating the best price they can get.

      Additionally, the families forgiving a significant amount of money as part of the bid should factor in, since the responsibility of the estate is to get the best deal, not the most cash.

    • SkaveRat@discuss.tchncs.deEnglish
      24·
      9 hours ago

      Problem is why did that auction even happen or rather was allowed if it was technically now allowed for a bankrupcy case?

      Feels like intentional so they can go “well, we don’t like the winner. time to revoke it”

      • Aatube@kbin.melroy.orgOP
        101·
        9 hours ago

        Apparently Jones chose a sham for his trustee who decided how to run the auction

        Edit: “sham” as in how Jones saw it. After receiving only 2 bids, Murray—the trustee—decided to only solicit best and final offers instead of following the original open auction procedure; the court didn’t expect changing those rules, but the change was completely within the trustee’s power. The court and Jones didn’t like that.

    • themeatbridge@lemmy.worldEnglish
      13·
      9 hours ago

      Sealed bids encourage last and best offers, and prevent the deepest pockets from submitting a “highest plus one” bid that minimizes the proceeds from the sale.

      This judge is either a dipshit or corrupt.

      • Aatube@kbin.melroy.orgOP
        31·
        8 hours ago

        The article says “the potential for an additional $1 million was not worth the risk of increased costs to the estate”. I don’t think that’s the case here.