Om Malik posted a rumor today regarding a new BitTorrent financing and possible ouster of CEO Bram Cohen. We did some independent digging and have come up with what I believe is accurate based on multiple sources and a leaked document: BitTorrent has raised a $25 million Series B round of financing from Accel Partners and previous investor Doll Capital Management, bringing the total capital raised to just under $34 million.
And CEO Bram Cohen, who created the BitTorrent protocol, is definitely on his way out. The company has retained the well known headhunting firm Heidrick & Struggles to find a replacement as soon as possible. No word on what, if any, role Cohen will have going forward.
More Upcoming BitTorrent News:
The company is yet to launch a new service to sell licensed video content on its own retail site, and has signed licensing agreements with, among others, Warner Bros. and Paramount to sell movies and TV shows at prices starting at $1 each. The company will also announce deals to put the BitTorrent software on DVRs, cable boxes, and wireless routers, enabling BitTorrent users to download legal movies or TV shows to PCs and TVs.
BitTorrent is making a real effort to stay legitimate and in favor with the RIAA and MPAA, which of course doesn’t sit well with the majority of the world’s 70 million BitTorrent users. Napster failed miserably when they tried to work with the RIAA. We’ll see how well BitTorrent does this time.
Update: In a very tense conversation with Bram Cohen and BitTorrent’s Director of Communications, Lily Lin, today, the company made it clear that Bram is with the company for the long haul. They would not comment on the CEO search.