Swedish company Global Gaming Factory X has approved its CEO's plan to purchase The Pirate Bay domain and replace it with a legal file-sharing site. But the company's stock has been suspended and no deals have yet been announced with content providers. Will a $20/month content buffet ever see the light of the Intarwebs?
Global Gaming Factory X, the Swedish company that plans to buy The Pirate Bay domain for SKr60 million (about $8 million), today held an "Extraordinary General Meeting" that has approved the deal. According to GGF, The Pirate Bay will shift to a legal file-sharing hub from day one after the acquisition.
The actual purchase process remains difficult to follow. GGF's stock is listed on the AktieTorget exchange, which had previously suspended the company from trading based on doubts about its disclosures and ability to raise money. The company is also being examined by the Swedish government's economics unit.
AktieTorget today issued a new press release (in Swedish) saying that GGF would go up before the exchange's Disciplinary Committee soon to determine if it would be permanently delisted. This would be a tremendous blow to the company, as CEO Hans Pandeya said Thursday that he plans to personally guarantee that the deal will go through by covering it with sales of his own stock, if necessary.
Pandeya won't be able to sell for at least several weeks, though, and GGF does not appear to have the full SKr60 million it needs to complete the deal.
In a "manifesto" (PDF) released to Wired earlier this week, Pandeya offered an odd meditation on property rights and civilization ("Man's innovation and creation was the driving force of the rise of the great civilisations of Mesopotamia, the Indus Valley, and Egypt") and went on to say that Pirate Bay users, in his view, would be happy to drop $20 a month for access to huge volumes of legal content.
Current piracy problems aren't due to the morally delinquency of youth, in Pandeya's telling, but to bad business models. "GGF can make the markets 'see' the value the entertainment industry creates on the Internet, and GGF will make this possible with the next generation filesharing technology... The new filesharing standard will capture the value in the form of cost savings in Internet traffic."
GGF plans to offer credits to those who upload files (and who therefore lower the costs of digital distribution for labels and studios), but the company has yet to announce a major deal with Big Content that might make this rosy scenario look plausible.
Source: ars technica