The deal between Global Gaming Factory (GGF) X and Peerialism, whose P-to-P (peer-to-peer) technology was supposed to be a key component of the new Pirate Bay's infrastructure, has been called off, according to Peerialism's CEO Johan Ljungberg.
The deal's Wednesday deadline passed without GGF coming up with the required 100 million Swedish kronor (US$14.3 million).
The deal's demise does not surprise Ljungberg. Given GGF's financial issues, Peerialism has been working under the assumption that it would not happen since GGF's offer became public in June, he said.
GGF did not reply to calls for a comment.
On Monday, GGF said it had received a 2 million Swedish kronor loan from private investors. It's the first in a number of loans that will be used to finance the acquisition of the file-sharing site The Pirate Bay, according to GGF. The company maintained it wants to acquire The Pirate Bay for 60 million Swedish kronor.
Also, on Thursday the Swedish Enforcement Authority said it has decided to freeze some of the assetsof GGF CEO Hans Pandeya. Two apartments are affected, according to a spokeswoman. The government sparing his stake in GGF is a small victory for Pandeya.
The Swedish agency moved to freeze the assets because GGF's former CTO Johan Sellström claims Pandeya owes him about 2.5 million Swedish kronor plus interest. On Sept. 24 the Stockholm district court found that there is enough evidence to freeze assets that equal the amount of the claim in anticipation of a future trial, it said.