MediaDefender Stock Plunges Due to Leaked Emails
It has been a rough year for MediaDefender and their parent company ArtistDirect. This September nearly 700mb of MediaDefender’s emails leaked to the public. Initially it didn’t seem to affect the stock price much, but after the financial consequences became apparent, their net worth plunged.
With still a few days to go it is probably safe to say that MediaDefender is one of the biggest losers of 2007. The leaked emails, published by the notorious “MediaDefender-Defenders“, gave away a lot of sensitive information and details about how MediaDefender sabotaged BitTorrent trackers and other file-sharing networks. Despite the fact that their decoy and spoofing operations were hugely ineffective on most BitTorrent sites, the company collected millions of dollars from the entertainment industry for protecting their content.
Unfortunately for them, one of their employees was stupid enough to forward all his work email to his Gmail account, without using a proper password. To make it even worse, more sensitive information started to leak as the email leak was soon followed by a p2p tracking database, a phone call and a collection of anti-piracy tools they used for their daily operations.
Soon after this sensitive information became public, the Pirate Bay launched a counterattack. They decided to use the information from the emails to file charges against some of MediaDefenders customers including Paramount Home Entertainment, Twentieth Century Fox and Universal Music Group for corrupting and sabotaging their BitTorrent tracker.
The leak did not have any effect on the stock price initially, but after the company announced that it had cost them $825,000, it started to drop hard. It turned out that MediaDefender’s parent company ArtistDirect spent $600,000 to compensate their customers and the rest of the money was used to cover legal expenses. The investors weren’t too happy about this news as can be seen from the picture below.
So what will happen now, will the company walk the plank to bankruptcy? Many people think it will, but MediaDefender still sees a future in the anti-piracy business. Sure, they were devastated by the leaks, but remarkably, they believe that it didn’t hurt the goodwill of the company. Makes you wonder what is needed to hurt this then, because it can’t get any worse if you ask me.
I’m sure we will hear from them again in 2008.
Previously: Japanese File-Sharing Population Explodes
Next: Piracy, Morals and The Need for Change
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Serves them right.
LOL!!! I dont know what else to say about this!
I’m not shure, but maybe the are referring to the financial term “goodwill”, not the commonly used meaning.
http://en.wikipedia.org/wiki/Goodwill_%28accounting%29
[quote comment="245368"]I’m not shure, but maybe the are referring to the financial term “goodwill”, not the commonly used meaning.
http://en.wikipedia.org/wiki/Goodwill_%28accounting%29/quote
They do, but I’m pretty sure that dropped quite a bit…
Outch.
No Porsche this year for the missus.
:)
I’m normally a very sympathetic person… Not for these people though.
They made money being anti-sharing. Disgusting.
wow they are screwed, that was one hell of a stock price drop
Please digg this topic,
and lets all burry this company into bandruptcy.
The best new news I’ve heard in months.
I think due to “Questionable” actions of MediaDefender (possible illegal) they should be required to pay stockholders a Premium, then shut down, befor they get shut down or go bankrupt. I would also encourage ANYONE who they tracked to file legal action against them. Even if is does not make it to court, they will spend tens of thousands again just answering and filing documents. (evil grin)
HA HA!
(points)
Hahahahahahahahaha this is good news.
FUCK MD :)
didn’t know MD was publicly traded…
When the trees falls, the Monkey scatters..
Merry Christmas, MediaDefender! :D
Thats what all the top executives get for wasting money on MediaDefender… Hopefully we will see less Anti-P2P in the future.
Touche!
Yoo mattey! They have been broadsided! Are they sinking yet?
“Merry Christmas, MediaDefender!”
Boom!
And Happy new year!
hope they all slip and fall into a rack of knifes and accidentally cut their nuts off.
happy holidays mediafags.
I love how some anti-p2p companies can actually try and get f’d over in the process. I want see what they are going to do in 2008.
Woo-Hoo! That calls for a cold one. Here’s looking at you, MD pinheads!
[quote comment="245497"]I love how some anti-p2p companies can actually try and get f’d over in the process. I want see what they are going to do in 2008.[/quote]
If there’s any justice, I predict Randy and Octavio will spend 2008 being the new squeegee guys on some street corner. :lol:
Hey Randy! How you like us now douchebag? Yarrr!
My wish come true :)
thanks god :) i owe you one :)))
I always asked god to fuck MediaDefender. LoL
God heard me ! now i am happy !
I think God gave me Xmas gift :)
Merry christmas MediaDefender!
Get some trees like thepiratebay did, don’t think alot, you are already fucked up, not possible to come back to anti piracy business again.
Get some trees and enjoy your self !
Awwww. poor MD. :( .
LOL.. nah F*ck ‘em . They deserve even more than this.
Well it’s a good thing they have “Goodwill”, it is an asset - an intangible one :) :)
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