- Pave the way for compensation model
The listed software company, Global Gaming Factory X AB (publ) (GGF) acquires The Pirate Bay website, http://www.thepiratebay.org, one of the 100 most visited websites in the world and the technology company Peerialism, that has developed next generation file-sharing technology. Following the completion of the acquisitions, GGF intends to launch new business models that allow compensation to the content providers and copyright owners. 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 acquires domain names and related web sites, including http://www.thepiratebay.org. The consideration for the purchase amounts to MSEK 60 consisting of at least MSEK 30 in cash and up to the equivalent of MSEK 30 in the form of newly issued shares in GGF (according to valuation in connection with the completion of the acquisition). The stock share of the purchase price is expected to be equivalent to a maximum of three per cent of the total number of outstanding shares of GGF after the acquisition. In the case that three percent of the shares is not equivalent to 30 MSEK, the major shareholder of GGF has declared that he will contribute the equivalent in cash.
GGF has 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. The consideration amounts to in aggregate MSEK 100 consisting of at least MSEK 50 in cash and up to the equivalent of MSEK 50 in newly issued shares in GGF (according to valuation during a period of ten days after the announcement). The share part of the purchase price should not exceed five percent of the total number of shares...