We grew up being told by our parents that crime doesn’t pay, yet after today’s report, sometimes it does.
ThePiratebay.org, a huge file sharing site, reportedly sold today to a Internet gaming software company for $7.8 Million dollars.
Swedish software company Global Gaming Factory X (GGF) has signed a deal to acquire The Pirate Bay for 60 million Swedish Kronor ($7.8 million), including $3.9 million in cash.
GGF, which operates software for a range of Internet cafes and gaming venues, said it plans to keep Pirate Bay in operation, but make the site legal by ensuring copyright owners get paid for material shared on the service.
GGF also announced a 100 million Swedish Kronor ($13 million) deal to buy Peerialism, an IT company that has developed a new file sharing technology.
A couple of months ago, four men who were the founders of the The Pirate Bay, were found guilty of violating copyright law for assisting the illegal downloading of protected material and sentenced to one year in prison and fines totaling 30 million Swedish Kronor ($3.9 million).
Note that the cash being paid in this transaction equals the fine the founders received. So basically the buyer is paying off the founders fines and giving the founders stock in the new venture.
Maybe the lesson is if you have a site with huge traffic, it has substantial value, no matter how you got the traffic.