Tron founder Justin Sun has just acquired BitTorrent Inc. The move did not come as a surprise as Tron’s whitepaper referenced BitTorrent in 8 different ways.
Negotiations for the acquisition began as early as September 2017, but did not go too smoothly as BitTorrent took time to consider its options. When the transaction finally pushed through, Sun renamed BitTorrent to Rainberry.
Upon investigation of the details of the deal, TorrentFreak reported that Justin Sun’s conditions for the acquisition involved a “no-shop” clause. Rainberry was not supposed to negotiate with other parties for as long as it was entertaining Sun.
This violation of the clause made Sun sue the company. However, while these difficulties were being sorted out, Sun created a new company named “Rainberry Acquisition”. This Rainberry company, together with BitTorrent’s Rainberry, merged after the validity of Sun’s letter of intent expired.
No details of the deal were disclosed, however. What is reported is that BitTorrent has been struggling to survive lately. It was once a promising new project based in Silicon Valley enabling users to share pirated music, videos, etc. Now that newer platforms are offering similar services via more legitimate means, Rainberry is losing money.
This deal is also quite the win for Rainberry/BitTorrent. BitTorrent CEO and founder Bram Cohen shifted his focus to pursue a cryptocurrency project starting April 2017. This contributed to the company’s failure to live up to its full potential. As a torrent company, it easily had a 100 million user base and could have grown into a tech giant. Tron’s acquisition of the company then allowed BitTorrent to settle for an undisclosed sum and move on to other things.
Tron has always intended to create a decentralized internet leveraging various blockchain-based projects. Rainberry’s peer-to-peer technology would be a valuable contributor to this vision. Details were not disclosed as to how Tron and Rainberry would be integrated to realize this. However, blog posts are hinting the public of a possible update or announcement in the near future.