Earlier this morning, Erick Schonfeld asked the question: Where did Kazaa get $115 million? This evening we have an answer – the Bank of eBay. Reuters reports that Skype and Kazaa co-founders Niklas Zennstrom and Janus Friis coughed up most of the money. That’s not that much considering that they got $2.6 billion they got from eBay.
But why settle now, and why pay up? My guess – its because of their new Peer-to-Peer TV effort, The Venice Project. Zennstrom and Friis have played loose and easy with the law want to go legit with their new service. They want to make sure that the past is erased and their new found riches make them truly respectable to do business with the entertainment business. Of course, there is still that pesky Streamcast lawsuit, but a few million could make that go away.