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 in GGF after the transaction. In addition GGF has undertaken to
make initial investments of MSEK 25 in the acquired business.
“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.
A Press briefing will be held on June 30th 2009 at 11.00 at
Spårvägshallarna, Birger Jarlsgatan 57 A, Stockholm.
Global Gaming Factory X AB (publ) has been listed on Aktietorget since
2006 GGFX has the largest network of Internet cafés and game centers and
provides software. GGFX thus has access to the largest group of games
players on the Internet. The company's principal shareholders are Magnus
Bergman (Chairman), Hans Pandeya, (CEO) and Johan Sellström, (CTO) (for
more details see attached CV and http://www.globalgamingfactory.com).
The Pirate Bay is one of the 100 most visited Internet sites in the
world and one of the leading search engines for file sharing. The site
has more than 20 million visitors and over one billion searches per
month.
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 Högskolan).
The head of research at SICS, Seif Haridi who also is a professor at KTH
will continue to be advisor to Peerialism.The company was founded in
2007 and has 14 employees and is based in Stockholm (more information http://www.peerialism.com,
http://www.sics.com,
http://www.kth.se).
Background
The market for the consumption and distribution of
digital media is characterised by a complex landscape of both national
and international legislation with difficult conflicts between different
areas of law – not least in balancing copyright law and rights of
privacy. This has led to a widespread global debate among
opinion-makers, politicians, academics, the general public and business
people.
In addition to the responsibilities of the individual Internet user, the
responsibility for user-generated material is diversely allocated
between different market participants and may also vary from country to
country. However, both U.S. and European law place certain obligations
on Internet Service Providers (ISP) and on Information Society Service
Providers (ISSP) to prevent the distribution of unauthorised or illegal
material. Time consuming legislative work and costly litigation are
taking place in all parts of the world as a result of the demands posed
by the technological evolution on the rules that are to apply.
All market participants, e.g. technology and broadband providers,
various service providers, search engines and rights’ holders would all
benefit from a clearer legal landscape that enables safe investments and
the continued evolution of the information society. GGF wants to accept
the challenge to position itself as a respectable participant in the
market and contribute to Internet’s infrastructure, with the goal to
establish working models for co-operation and a clear allocation of
responsibilities on market terms, respecting both intellectual property
rights and the rights of privacy.
Below you can find a selection of links related to the discussion; http://hbswk.hbs.edu/item/4206.html
http://www.downloadsquad.com/2009/04/18/is-google-the-next-pirate-bay-in-a-word-no/
http://cci.mit.edu/research/prediction.html
CV – Global Gaming Factory X AB
Hans Chandra Pandeya, CEO
St.
Columba's School, New Delhi, MSc Engineering Physics, Royal Institute of
Technology, KTH, Sweden and MBA Harvard Business School.
Co-founder of Bargain Pages, an advertising paper for free ads in
Birmingham, UK. Sold to one of the biggest classifieds publishers in
Europe. Co-founder of Ad-Mag, advertising papers for free ads in India.
Co-founder of advertising papers for free ads in Australia. Sold to John
MacBain's Trader Classified Media, the biggest classifieds publisher in
the world.
CEO of Interline Networks, an Internet telephony network in Sydney,
Australia. Launched a web phone for free phone calls in 2000.
Founder and owner of Unika Bostäder AB, a property developer in
Stockholm, Sweden.
Worked with advertising papers, IT companies, and property development
for 17 years.
Johan Sellström, Technical Director
MSc Engineering Physics, Royal Institue of Technology, (KTH) Sweden.
Co-founder and Chief Technology Officer, Icon Medialab, one of the
biggest IT consultancy firms in Europe.
Analytical methods and implementation, Aeronautical Institue of Sweden,
SAAB Military Aircraft, Volvo.
Magnus Bergman, Chairman
MSc in Aeronautics, Royal Institue of Technology, (KTH) Sweden, PhD in
Physics, Institute National Polytechnique, Toulouse, France.
Co-founder and CEO of Parallel Consulting Group AB that was sold to Icon
Medialab in 1999.
Former Director of Icon Medialab. Co-founder and CEO of Cross Connect
Network Group AB.
Chairman of Mobispine AB, Efield AB, CrossVenture Capital AB.
More than 20 years of experience in development of IT companies in the
areas of parallell computing, advanced computer technology, IT security,
application interfaces, communication and methodology.
This information was brought to you by Cision http://www.cisionwire.com
Hans Pandeya, CEO, Global Gaming Factory X AB, +46 733 16 42 10
or
Media
contact, + 46 706 55 24 36