Software company Global Gaming Factory X AB said on Tuesday it had agreed to buy free file-sharing website The Pirate Bay for $7.7 million and developed a new file-sharing technology.
Following the completion of the acquisitions, intends to launch new business models that allow compensation to the content providers and copyright owners, the company said. The responsibility for, and operation of the site will be taken over by GGF in connection with closing of the transaction, which is scheduled for August 2009.
"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 Hans Pandeya, CEO GGF.
"The Pirate Bay is a site that is among the top 100 most visited Internet sites in the world. 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, " continues Hans Pandeya.
GGF acquired the domain names and related web sites, including http://www.thepiratebay.org.
The four Swedish men behind the website were sentenced in April to one year in jail and ordered to pay damages of 3.6 million dollars for running the site, which is one of the world's largest for downloading files on the Internet.
GGF has also entered into an agreement to acquire the shares in Peerialism AB. Peerialism AB is a software technology company with its origin in KTH Royal Institute of Technology and SICS, Swedish Institute of Computer Science and which presently is owned by the employees. The owners as well as the employees will continue to work for the company. Peerialism develops solutions for data distribution and distributed storage based on new p2p- technology. The access to the technology is secured by the acquisition, according to GGF.
"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", says Johan Ljungberg, CEO Peerialism.
Completion of the acquisitions are primarily subject to GGF obtaining financing for the acquisition, that any necessary resolutions are adopted by a General Meeting of GGF, and that GGF and the Board of Directors consider that the acquired assets can be used in a legally and appropriate way. GGF intends to issue new shares in order to obtain the necessary financing for the acquisition. The acquisition is deemed to be completed in August 2009. In connection therewith, the ownership of, and responsibility for, the acquired assets will be transferred to GGF.
"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," says Hans Pandeya.
Global Gaming Factory X AB (publ) has been listed on Aktietorget since 2006 GGFX has the largest network of Internet cafes and game centers and provides software. GGFX thus has access to the largest group of games players on the Internet.
Peerialism AB develops solutions to transport and store data over Internet based on new p2p technologies. The solutions are capable of large scale media distribution with clear advantages over existing solutions; it makes better use of networks resources whilst reducing ISP traffic and significantly lowering the cost of media distribution. The technology has its origin from research projects within SICS (Swedish Institute for Computer Science) and KTH (Kungliga Tekniska Hogskolan).