Cryptocurrency project NEO, also known as the “Chinese Ethereum”, intended to acquire the company Bittorrent Inc., operator of the popular uTorrent client, through the venture firm Neo Global Capital (NGC). The amount of the purchase could be worth $170 million, but the Bittorrent chose to enter into a transaction with the Creator of the cryptocurrency TRON Justin San, although the latter has offered $50 million less. It is reported by CoinDesk, citing internal documents of the company and sold to informed sources.
According to the publication, Bittorrent came to the conclusion that the transaction with NGC was not in the interests of the company and shareholders.
It is noteworthy that initially Justin San supposedly was not going to buy the company completely, but only wanted to buy 99% of the preference shares Bittorrent at venture capital firm DCM, proposing $90 million to $100 million.
NGC allegedly appeared on stage a month later and was immediately offered a full purchase — $115 million for preference shares, DCM, and $55 million for all shares.
However, at some point NGC, according to the sources, has refused the conditions to complete the transaction in six months that Bittorrent could take a step backward.
In addition, the company allegedly concerned that the main assets of NGC are cryptocurrencies that could complicate the process of converting the required amount in a foreign currency and jeopardize the deal.
In NGC explained his actions by saying that he was afraid of the reaction of the Committee on foreign investment in the United States, which is not very favorably perceived attempts of Chinese companies to access the intellectual property of American businesses, the sources added.
Also representatives of the venture capital firm allegedly began to doubt that on the basis of Bittorrent Protocol, you can build an effective, decentralized storage of files for blockchain projects.
So, on February 14, BitTorrent has accepted the proposal of Justin Sana — $90 million in preferred shares and $30 million for ordinary.
We will remind, on completion of the transaction was announced on July 24.