New Deals, Big Money for BitTorrent?

14 Comments

Update #2 @ 2.42 PM, Wednesday: We have received confirmation that the $25 million round is closed and Accel is indeed leading the round of financing. In addition, Bram emailed us and lets us know that he is still with the company. “I’m still happily here at BitTorrent, and there’s no plans for me to leave,” he wrote to us in an email.

Updated: BitTorrent has signed partnerships with major media companies like 20th Century Fox, Paramount, Starz Media and Comedy Central. These deals with the established media are perhaps a sign why the company is being able to raise more money. Of course, the digital download store is still not open.

Sources say BitTorrent, the company trying to monetize the peer-to-peer distribution software of the same name, is close to raising a substantial round of funding. The round is estimated to be at least $15 million and could be as high as $25 million.

Accel Partners and Doll Capital Management are likely investors in this round, one source tells us.We have not been able to confirm this from more than one source, so please take it with a big grain of salt. BitTorrent spokeswoman Lily Lin emailed us back and said no announcements on any funding.

There is talk about founder and CEO Bram Cohen being replaced by a more seasoned manager, and apparently have hired a head hunter, to lead the search. We have confirmed this information.

BitTorrent previously raised $8.75 million from Doll Capital Management, something we also heard rumored before it happened.

BitTorrent has not yet launched its long-awaited video store. Perhaps this latest funding will boost the company’s e-commerce rollout. BitTorrent spent some of the year announcing truces and partnerships with Hollywood, but it has been quiet lately. We don’t yet have information about the identity of the funders, but we will report back when we know more.

14 Comments

Kragen Sitaker

Bram is a hacker of the first rank, like Steve Wozniak. Why should he waste his time managing people when he can be more valuable to the company doing technical work? It would clearly be irrational. When you found a company, you have to do a wide range of things, but you shouldn’t necessarily have to keep doing them permanently.

Om Malik

Bob,

you don’t have to take my word for anything. entirely your call on this. however, when the future will unfold, and we will see what happens.

Bob

“bob, we have seen documents which outline that the company is seeking a new CEO.”

Really? Let’s see them. Bram is saying he’s staying aboard as CEO and is not leaving BitTorrent. Why should we take your word over his, and over all the other news sources that dispute your claim?

Om Malik

bob, we have seen documents which outline that the company is seeking a new CEO. However, as Bram suggests, he is staying with the company. Perhaps in another role. Or as a co-CEO. Frankly, at this point, lets wait and watch what is going to unfold.

bob

“There is talk about founder and CEO Bram Cohen being replaced by a more seasoned manager, and apparently have hired a head hunter, to lead the search. We have confirmed this information.”

You should have asked Lily to confirm whether Bram was leaving BitTorrent. It seems like the consensus is shifting towards no…

Lemon Obrien

bitTorrent is dead. check out tamago.us they’re up and running with no funding, and making some bank. bit-torrent just wasted 8 million, doesn’t even have a product out, and no one uses it anymore; most people just use GrabIt to download movies from news groups. I know most of you guys can’t code, but bitTorrent’s technology ain’t special…its just the linux freaks who think everything should be free and love bram use it…like that Pirate Bay group in Sweden.

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