News emerged on Monday of the sale of BitTorrent to Justin Sun and his blockchain startup, Tron, for $140 million.
This follows rumors that have been circulating for around a month that both companies were in negotiations, and reports now suggest that shareholders have been provided with the relevant paperwork needed to sign off on the deal and rubber stamp it completely.
A number of these shareholders are still disputing who it was that introduced both companies and helped to facilitate the deal in the first place, but sources close to goings-on have downplayed any suggestion that such disagreements will jeopardize the acquisition.
It’s been common knowledge that BitTorrent has been in the market for a buyer for quite some time now.
Tron is one of the newer companies to enter the blockchain space and was founded by Justin Sun who previously worked for Ripple. The company aims to create “a truly decentralized internet and infrastructure” which includes the creation of its own cryptocurrency, TRX.
This particular deal has left many industry observers unsure as to what Tron intends to do with BitTorrent, but sources close to the company have hinted at two plans. One suggests that Tron intends to use BitTorrent as a possible network to assist in the mining of coins, where BitTorrent’s P2P framework and extensive network of users will come into play.
BitTorrent has recently claimed that it has upwards of 170 million users spread across its various products, which includes its main client and BitTorrent Now, which is primarily focused on video and music.
BitTorrent also alleges that its protocols are responsible for moving around 40% of the world’s internet traffic on any given day.
Formed in 2004 by Bram Cohen and Ashwin Navin as a means to share and store files via peer-to-peer networking technology, BitTorrent was considered a pioneer in the world of decentralized network architecture which saw all the machines in the network used as nodes.
BitTorrent will also be remembered for the issues that come with being a “file sharing” company over the past few years, and in recent times it had created a failed strategy to build a longer-term business.
While the future for BitTorrent in some form isn’t clear at the moment, it’ll be interesting to see where Sun and Tron take the technology in the future.
Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.