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Sweden Launches Criminal Probe of Pirate Bay Sale 48

uolamer writes with word that the Economic Crimes Bureau in Sweden has opened an investigation into the upcoming purchase of The Pirate Bay by Global Gaming Factory X. Quoting: "The Swedish newspaper SvD reported Saturday that authorities are looking for possible insider trading after Global Gaming's stock jumped a week before they announced plans to acquire The Pirate Bay. Trading of Global Gaming shares was halted by AktieTorget, a Swedish exchange, on Friday after officials there requested proof that Global Gaming had enough money to complete the sale. Global Gaming has yet to produce the required documentation. Until officials get the proof they need, they said they won't allow the stock to be traded again."
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Sweden Launches Criminal Probe of Pirate Bay Sale

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  • Stocks ROSE? (Score:5, Insightful)

    by h4rm0ny ( 722443 ) on Saturday August 22, 2009 @08:15AM (#29154967) Journal

    Okay, I can believe in insider trading, it happens. But why on Earth would stocks rise on the news of such a numbskulled idea as buying the The Pirate Bay. Are investors that daft that they think this is a good idea? The Pirate Bay made money, not huge amounts but enough to make it worthwhile, by selling advertising without having to charge for product (they co-ordinated the downloading of other people's). How can this potential buyer possibly expect to make money from the site when they're no longer facillitating the downloading of copyrighted material? If they try to charge for their service, which is what elsewhere has been said is the intention, then they'll find the users of the Pirate Bay vanish in short order. People used it because they got stuff for free that they'd otherwise have had to pay for. That's not a market that you can suddenly slap a paid service on top of.

    Buying the Pirate Bay is a terrible business decision. They're better off being blocked from it by the courts if they don't have the sense not to themselves! ;)
    • RTFA (Score:1, Redundant)

      by argent ( 18001 )

      RTFA: "authorities are looking for possible insider trading after Global Gaming's jumped a week before Global Gaming announced plans to acquire The Pirate Bay"

      • Re: (Score:3, Insightful)

        by chill ( 34294 )

        Try again, this time with the right emphasis.

        "Authorities are looking for possible insider trading after Global Gaming's jumped a week before Global Gaming announced plans to acquire The Pirate Bay"

        Before is implied by insider trading. The point is, someone with that info before the public thought it was a good idea, and was willing to pay more for the company stock based off of -- possibly -- the idea that they were acquiring TPB. The original poster's argument was "WTF? Are they all morons?", and that still stands.

        • RTFOP (Score:1, Redundant)

          by argent ( 18001 )

          The OP wrote "But why on Earth would stocks rise on the news of..."

          I'm pointing out that the rise was BEFORE the news. Which is, as you say, an indication of possible insider training. If insider trading was involved, it merely means that the insiders were expecting the stocks to rise even higher on the announcement. Betting on "greater fools" isn't a sure thing, but it's successful often enough to be worthwhile for someone riding the ragged edge of the law anyway.

        • The story as I understand it:

          Business model: Arrange the free distribution of other people's intellectual property.

          Company name: Don't hide the business model. Call it "Pirate" Bay.

          Operation: Facilitate the distribution of pirated software, for years.

          Income: Sell advertising to companies that are not concerned about the business model. Make $3,000,000 U.S. [google.com] per year.

          Arrange a sale of the company: Sale of what?

          The story today: The Swedish government investigates possible illegal activity by
          • "Authorities are looking for possible insider trading after Global Gaming's jumped a week before Global Gaming announced plans to acquire The Brooklyn Bridge from a trenchcoated man who lives beneath it"
      • Insider trading is insiders telling investors about something they (the insiders) are going to do, to give those investors a chance to "get ahead". Generally the insider gets a cut of the profits the investor makes. Nothing in the GP's post indicates that he didn't know this.
        • by argent ( 18001 )

          Insider trading is insiders telling investors about something they (the insiders) are going to do, to give those investors a chance to "get ahead".

          And "getting ahead" may mean "getting a better deal on a stock that's going to be valuable long term".

          Or it may mean "getting the stock and selling it when it bounces after the announcement".

      • Re: (Score:3, Insightful)

        by jonbryce ( 703250 )

        Is knowing that the company is about to blow however many millions of Krona on a domain name that has nothing to do with your business really inside information that could cause the share price to rise.

        If I had that information, I would probably think about shorting the shares rather than buying them. And seemingly I would have made a loss on the deal.

    • If you believe themselves more than the music industry, they made square even when you also considered their expenses. http://translate.google.com/translate?hl=en&sl=sv&tl=en&u=http%3A%2F%2Fwww.svd.se%2Fkulturnoje%2Fnyheter%2Fartikel_827981.svd [google.com]
    • Re: (Score:3, Insightful)

      by mrbcs ( 737902 )
      It's the same as the Napster fiasco. They're buying the name in hopes of turning it into a legit operation. Umm.. good luck with that.

      Other people have pointed out that the summary tells us that their stock rose before they actually announced intentions to buy it. That's obviously stock manipulation from my point of view. Get the price high, dump the shit stock, then let the company go broke.

      • Re: (Score:3, Interesting)

        "They're buying the name in hopes of turning it into a legit operation. Umm.. good luck with that."

        Actually, I'm sort of cheering for them. I don't hold out much hope, but I'm cheering all the same. Go ahead, ask me "WHY?" Well, since you asked, I'll tell you!

        Bit Torrent is nothing more, and nothing less, than a protocol. It shouldn't have a legal status, or an illegal status, any more than verbally enunciating ideas should have a legal status. No form of communication should be make illegal.

        If these p

        • by genner ( 694963 )

          "They're buying the name in hopes of turning it into a legit operation. Umm.. good luck with that."

          Actually, I'm sort of cheering for them. I don't hold out much hope, but I'm cheering all the same. Go ahead, ask me "WHY?" Well, since you asked, I'll tell you!

          Bit Torrent is nothing more, and nothing less, than a protocol. It shouldn't have a legal status, or an illegal status, any more than verbally enunciating ideas should have a legal status. No form of communication should be make illegal.

          If these people can actually make torrents work for a legal, reputable company, then we have less to fear from ISP's throttling or even stopping torrents. We, the WWW of internet users, NEED someone to adopt this technological protocol to lend it credibility. More generally, P2P needs to be recognized as an acceptable means of communications. As things stand right now, if you and your family & freinds are amateur photographers, and you have extensive libraries that you like to share between your households, the ISP can claim that you are all pirates, and shut you down.

          Yes, we need this.

          World of Wacrarft already uses bitorrent to handle updates. No ISP would block it outright so long as that's the case.

          • Re: (Score:3, Interesting)

            by Q-Hack! ( 37846 ) *

            World of Wacrarft already uses bitorrent to handle updates. No ISP would block it outright so long as that's the case.

            And yet Comcast [cnet.com] did exactly that...

            • by genner ( 694963 )

              World of Wacrarft already uses bitorrent to handle updates. No ISP would block it outright so long as that's the case.

              And yet Comcast [cnet.com] did exactly that...

              I sorry what I ment to say was no isp would admit to blocking bittorrent.

        • by Thing 1 ( 178996 )

          Bit Torrent is nothing more, and nothing less, than a protocol. It shouldn't have a legal status, or an illegal status, any more than verbally enunciating ideas should have a legal status.

          Agreed. However, unfortunately, there are specific verbal communications channels that are legally forbidden: alerting people to an imaginary fire, inside a theatre, for instance.

          That said, I wonder what the law would think of a cop suspense movie where the cop had drawn, but was reluctant to fire (on his rogue partner w

          • by h4rm0ny ( 722443 )

            Agreed. However, unfortunately, there are specific verbal communications channels that are legally forbidden: alerting people to an imaginary fire, inside a theatre, for instance.

            That's communications content, rather than communications channel. The GP is saying that no channel should have a legal status. E.g. in your example, it's not shouting that is an illegal act, but what you are shouting. In short, if action is to be taken against the illegitimate sharing of copyrighted material, then the target shou

        • Novel has torrents of OpenSuSE. Canonical has torrents of Ubuntu and the various other *untus, and there are plenty of other examples.

          Bittorrent is perfectly OK for free distribution of your own stuff. If you want to distribute stuff illegally, there are plenty of better ways to do it where there isn't a single attackable point of failure.

          People generally don't like p2p networks for paid-for content due to higher bandwidth costs.

          • You kinda miss the point, though. A number of ISP's throttle P2P, and I guess some actually block it. The excuse given is, it's unimportant, and legality is always mentioned. P2P in general, and torrents specifically, shouldn't even be questioned at the ISP level - it is a legitimate protocol with legitimate uses, as you point out.

        • Bit Torrent is nothing more, and nothing less, than a protocol. It shouldn't have a legal status, or an illegal status, any more than verbally enunciating ideas should have a legal status. No form of communication should be make illegal.

          I don't think anybody's suggesting that the protocol be made illegal. But if someone started a site called "The Death Bay" and on it people could use random protocol X to share lists of people to kill, I don't think you'd see too many people defending them saying "Ah, but they aren't soliciting people to commit murder... they're simply facilitating communications between two parties using a wonderful protocol. Nothing illegal about what they're doing at all, no sir!"

    • Re:Stocks ROSE? (Score:4, Insightful)

      by Xemu ( 50595 ) on Saturday August 22, 2009 @09:50AM (#29155379) Homepage

      Buying the Pirate Bay is a terrible business decision.

      Not so terrible if they bought the Pirate Bay for the purposes of manipulating the share price. The share price went up significantly, and for the "lucky" souls who bought before the announcement and sold on the news, this has been good business.

      However it didn't soar as much as the CEO expected. Part of the payment would be in the company's own stock, and that payment assumed a valuation of the company at 1 billion SEK. It's magnitudes less, around 60 million. And even that valuation is crazy, because the company is so poor that it doesn't even pay its debts.

      The company is very suspicous and the investors are either stupid or blind. At least one of the board members have left GGF since the deal was announced. The last two auditors left a "tainted" audit that they were not satisfied. The auditors also had to go to the government collection agency to even get paid. These are not signs of a healthy company.

      Classic pump and dump scam, I think.

      • I think you mean "bought on the rumour, sold on the news". The announcement and the news are the same thing.

    • Indeed, I also have a very hard time imagining that the new owners will be able to make a deal with the big studios to legally distribute their content. TPB has repeatedly mocked and humiliated them by publicly posting their legal claims and laughing in their faces. Do they really think Hollywood would want to associate with an entity that sodomized them in the past ? They must really believe in the Stockholm Syndrome [wikipedia.org]
    • by Kjella ( 173770 )

      I'd probably have bought stock then too if I knew, despite the idea being a complete brainfuck. Why? There's a great many thing that influence stock markets, one of them is how many want to get in on something and how many want to get out. GGF is in essence a very small company, if you manage to get the world's attention about anything, anything at all there's bound to be many idiot investors out there looking to get in on it. Not many compared to all investors, but many relative to the size of the company

    • Re: (Score:3, Insightful)

      by dkleinsc ( 563838 )

      Are investors that daft that they think this is a good idea?

      I'd say investors who engaged in the stock bump are either:
      1. Uninformed suckers who think that this is actually a good idea. (Most likely non-techies, probably older investors)
      2. People who think that they can make a bundle by selling the stock off to people in group 1. (i.e. people who know financial markets well)

      If you don't think that investors aren't often completely daft, I invite you to take a look at the wreckage of the thousands of VC-funded online businesses who never made a dime.

    • People used it because they got stuff for free that they'd otherwise have had to pay for. That's not a market that you can suddenly slap a paid service on top of.

      Where can I buy downloadable hidef copy of movies without DRM so I can play it on my Linux XBMC?

      I would be willing to spend up to the cost of the physical medium in order not to have to worry about that knock on the door.

    • by zcold ( 916632 )
      your right, terrible decision, but read, "are looking for possible insider trading after Global Gaming's stock jumped a >week before they announced plans to acquire The Pirate Bay. " stock rose before the announcement, not when they announced..
  • by nostriluu ( 138310 ) on Saturday August 22, 2009 @08:30AM (#29155011) Homepage

    Their plan is to make money off the residue of what TPB was. Their projection is that bots and spiders alone will generate enough advertising dollars to pay for the sale. Also they are working on a co venture with The Onion to expand on http://thepiratebay.org/legal [thepiratebay.org]

    PS why is comment posting so horrible (Using Firefox on Linux). its laggy and loses focus (not me, the comment box). Just give me plain text, please.

  • From the article on CNET it appears that GGF is about to go out of business. I wonder if TPB will then look for a new buyer.....
  • Always loved Pirate Bay, didn't know it was being sold.
    • How's that cave treating ya? ;)

      Supposedly the new owners will make use of a different logo so as not to upset the faithful pirates who got tattoos and such of the current logo.

      I myself have a t-shirt. It was a bit pricy, but it's very high quality.

      • That deserves +1 funny. But, it's terribly unkind, all the same. GP isn't a cave dweller at all. Well, not since he moved here [pbase.com]

  • I assumed it was a way of shutting down TPB by buying it.
    • by genner ( 694963 )

      I assumed it was a way of shutting down TPB by buying it.

      That's not the intention but it is the result,

  • ...who was a member of local MPAA/RIAA, had a vested interest in the judgement and possibly a financial stake in the outcome.
    So, in short, a large corporate buys up a judge, gets custom judgement, makes donations to the politicians, and everything is A OK.
    But when a poor company buys a bankrupt company, that is criminally investigated since the bankrupt company went bankrupt without paying the large rich corporate....
    Wow!

    • by Thing 1 ( 178996 )
      WTF. Why TF didn't the authorities investigate the obviously crooked judge? I mean, I'm in another country and I can smell the corruption.
      • Re: (Score:2, Informative)

        by itsanx ( 1534709 )
        Oh, they did investigate it. The investigation resulted in a 14 page document practically redefining the very meaning of "jÃv" (conflict of interest). The verdict is that there are several minor reasons to doubt the judge's neutrality but no single large enough reason. I think this type of reasoning proves that juridics is, at its worst, nothing more than word bending - building a seemingly coherent chain of logic, stating the severity for a set of non-absolute definitions, sum things up in a way that
        • ...yes, when it comes to protecting its own, the Govt exceeds the expectations.
          Surprising.
          The same thing happened in Francea few centuries ago and resulted in the Monarchy being booted out to the Guillotine.
          The same thing happened in Russia in 1917.
          And we wonder why...

  • is this a controlled model of a free market ... :?

A triangle which has an angle of 135 degrees is called an obscene triangle.

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