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Pirate Bay Acquired, Will Compensate Content Providers
Pirate Bay Acquired, Will Compensate Content Providers
June 30, 2009 | By Kris Graft

June 30, 2009 | By Kris Graft
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Embattled file-sharing site The Pirate Bay has been acquired by game networking company Global Gaming Factory for $7.8 million, and will turn the website into a legitimate operation that compensates content providers.

"We would like to introduce models which entail that content providers and copyright owners get paid for content that is downloaded via the site, " said GGF CEO Hans Pandeya in a statement. The acquisition is slated to close in August.

Pandeya said that Sweden-based The Pirate Bay is one of the "top 100 most visited internet sites in the world." He added, "However, in order to live on, The Pirate Bay requires a new business model, which satisfies the requirements and needs of all parties, content providers, broadband operators, end users, and the judiciary. Content creators and providers need to control their content and get paid for it. File sharers need faster downloads and better quality."

Today, The Pirate Bay is known best as a destination where users can download illegitimate copies of music, movies and games. In April, a Swedish court sentenced the four creators of The Pirate Bay to one year in prison and fines of $905,000 each for "assisting in making copyright content available" via the website.

As part of the deal, GGF acquires all of The Pirate Bay's domain names and related websites. GGF will take over operation of the site on the deal's closing.

The Pirate Bay's blog said, "We've been working on this project for many years. It's time to invite more people into the project, in a way that is secure and safe for everybody. We need that, or the site will die."

GGF also said that it acquired German software company Peerialism for $13 million, a company that has developed file-sharing technology.

“Peerialism has developed a new data distribution technology which now can be introduced on the best known file - sharing site, The Pirate Bay. Since the technology is compatible with the existing it will quickly allow for new values to be created for all key stakeholders and facilitate new business opportunities”, said Johan Ljungberg, CEO of Peerialism.

Pandeya added, "As a result of the acquisitions of The Pirate Bay and Peerialism, GGF will have a strategic position in the international digital distribution market. File sharing traffic is estimated to account for more than half of today's global Internet traffic. The Pirate Bay has a global brand and holds a key position with over 20 million visitors and over one billion page views per month."

The acquisitions are subject to GGF obtaining financing and authorization by GGF's board of directors and investors.

GGF also has a large network of internet cafes and game centers.


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Comments


Latigo Sharon
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"The Pirate Bay has a global brand and holds a key position with over 20 million visitors and over one billion page views per month."



Well good luck with a billion page views when you start charging for content. The reason it was so popular.......it was free. I'm sure the conversion rate for the people who visit the site to download pirated media vs. the number of people who will buy from the site, is pretty low.

Ibrahim Yucel
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Right just like napster is still popular, Right?

Henk Hopla
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You mean: "Wow 7.8 mil for a website that dealt in illegal content".



I can't believe they made that much 'legit' money of something that was essentially illegal.

Dennis Smith
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Let's see...jail and a huge fine vs. getting paid millions for your website. I think they made the right choice but I will miss the site.

Sean Parton
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Who wants to take bets on the founders coming up with a new site within the next half a year? I'll bet 50 leechers.

steve roger
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They just want access to the IP addresses. That is what is worth money.

Adam Moore
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Unless they plan on compensation through advertising revenue, this is going to fail like Napster did when it went legit. People pirate stuff because they don't want to have to pay for it.

steve roger
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Dennis, I think that would be jail plus a fine and selling their website for millions of dollars. They are in prison, but not a terrible one.

Adam Bishop
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That's a silly generalisation. I've "pirated" things for other reasons, like when I've looked for a copy to buy but find that a game is out of print or otherwise not available. I'll admit to having downloaded the fan translation of Mother 3, which isn't available here in North America. And if Nintendo ever does decide to release the game in North America, I'll gladly head out to the store and buy a copy, just like I did with the original Earthbound.

Bruno Dion
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I've got movies that couldn't be found anywhere for university from this site. I guess I'll have to find them somewhere else.

Anatoly Ropotov
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Dear GGF, when could I expect check for all the losses over the previous years? I'll be very generous and will agree to settle for $200k.


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