The software developer BitTorrent Inc. has be acquired by the founder of the cryptocurrency project TRON, Justin Sun. The negotiations that started in September last year, finally came to a conclusion with both parties filing for a merger. There is no information about the financial details of the merger, but Justin Sun definitely has a plan for the new acquisition.
Justin Sun is expanding his kingdom
The story first came to the spotlight last month, when it was reported that negotiations are taking place between BitTorrent and Justin Sun. Still there were many questions and the negotiations weren’t officially confirmed. Also not everything was going smooth, because a letter of intent was not received well and the deal was uncertain. TorrentFreak was the first that reported the talks, between the two parties, and they discovered that Justin Sun had sent a Letter of Intent to acquire the company with a no-shop clause. A no-shop clause prevents the company from talking with other parties about a deal, while the clause is in effect.
BitTorrent, who are now renamed Rainberry, had violated the clause and it was reported that Justin Sun is going to sue the company. However the letter expired and it was reported that Justin Sun has registered a new company with the name “Rainberry Acquisition”. Not long after that, the BitTorrent management informed their staff about the deal coming to an end. BitTorrent staff and employees were advised to not release any details about their progress or about the deal.
Even the stakeholders were contacted by the agent that supervised the deal. There is no information about the financial details of the deal, however Justin Sun holds around 34% of the whole TRON market cap, which is at least 1.6$ billion in TRX tokens. It is still unclear, why did Justin Sun want to acquire BitTorrent or if he acquired them with the TRX money, but it will become clear in the following weeks. Rainberry can be or not a partner to TRON’s plans for a decentralized internet.
BitTorrent are needing help and Justin Sun is here to help
After creating the Rainberry Acquisition company, BitTorrent filed a change of status with California’s Secretary of State to prepare for the merger. The merger documents were filed later the same day. BitTorrent canceled their live streaming business that was developed by Bram Cohen. He had left the company previously for a Chief Executive Officer position at the San Francisco company, Chia. They are focused on providing and improving cryptocurrency infrastructure.
BitTorrent was once one of the most hyped projects in the Silicon Valley, but they failed to live up to their potential. BitTorrent was formerly used to torrent illegal content. However, similar sites had crushed the competition and BitTorrent’s user base declined fast. Two different CEOs tried different methods to save or revitalize the company. BitTorrent tried to enter the media industry, but it turned out to be a mistake that costed the firm and both CEOs were fired after the closing of the studio.
But to some, BitTorrent’s acquisition might not be a surprise at all. BitTorrent is mentioned eight times in TRON’s whitepaper. As of writing this article, TRON or TRX stands strong in 10th place of the cryptocurrency market cap list. The market has declined since yesterday and TRX has fallen from more than 3$ billion in market cap to 2.67$ billion and trading at around 0,04$ a piece. TRON’s mission is to build a decentralized internet space that allows blockchain projects to be created on it. Rainberry’s peer-to-peer technology might help in TRON’s plans. We should expect in the following days or weeks an announcement from Justin Sun as he is quite active on social media. It still remains to be seen, how the deal will pan out for TRON’s future.
Click here to read about TRON’s Tokenswap and TRON’s next step towards independence from Ethereum.
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