Blockchain Company Tron has completed the acquisition of BitTorrent, a file-sharing service. Both sides are yet to reveal the financial terms of the deal. Unconfirmed media reports have however indicated that TRON paid $126 million to complete the deal. Tron is a blockchain startup and has issued a cryptocurrency called TRX. The coin currently has a market cap of $2.46.
Creating an internet of options
Currently, BitTorrent has more than 100 million users around the world. The company announced that it will be shifting its operations to a new location in San Francisco where TRON is also based. BitTorrent also indicated that joining the TRON network is a big boost and will help in the company’s mission of developing an internet of options, not rules.
Change of business
In a statement last month, BitTorrent indicated that it has no plans of changing its line of business. Additionally, the company announced that it has no plan of offering crypto mining services. BitTorrent also announced that it does not intend to change the fees it charges for its services. It however remains unclear of Tron’s plan for BitTorrent going forward.
News of a possible BitTorrent-Tron deal was first announced by Ashwin Navin, the co-founder and former president of BitTorrent. Ashwin revealed that Tron was offering $120 million for BitTorrent.
The news led to widespread speculations with many expressing worry that after the merger BitTorrent may increase its fees. According to media reports, talks of a possible deal were initiated by TRON founder Justin Sun in September last year. The two companies signed a “no shop” clause, which prevented BitTorrent from discussing possible mergers with other bidders. BitTorrent however reportedly violated the clause prompting Sun to sue. The lawsuit is still pending in court.
The deal brings an end to a chapter in the history of BitTorrent, which has been largely turbulent. The company was developed on the notion of creating a decentralized internet. At the same time, the company had to operate as a business. Over time BitTorrent has been making attempts to launch apps and services that could turn around its fortunes.