Following Pirate Bay's announcement on Tuesday that it will be acquired by a Swedish software company, analysts are speculating what will happen to Video Bay, its new video streaming site that places them in direct competition with services like YouTube and Hulu.

On Monday, The Pirate Bay launched the beta version of Video Bay, a new video-sharing site that streams content online, in what looked like to be another move in its freewheeling business approach. The following day, the company made a surprise turn when it announced it would be acquired by Global Gaming Factory X (GGF) for $7.8 million (SEK 60 million), making them a legit company that will be traded on the Swedish stock market.

In an interview with IBTimes, GGF CEO Hans Pandeya said that it will overcome illegal file-sharing by making it more attractive for file sharers.

File sharers will start earning money. The new thing that we will implement is a peer-to peer technology where users can create a revenue stream from storage and internet traffic optimization, Pandeya said.

The main difference in terms of content will be that the files would be hosted legally, rather than stolen from copyright holders.

When asked about The Video Bay, Pandeya confirmed that it would not purchase the site. It is presumed that TPB founders will continue operating the site.

Bobby Tulsiani, a senior analyst at Forrester Research, said Video Bay will face several obstacles.

A site like this will be difficult to clear through the courts and if they do, video-streaming sites are expensive to host so it's a wonder how they will pay for this, Tulsiani said.

There are already enough legal content providers like Hulu, YouTube, Fancast which are doing a good job of meeting users needs, so users won't need to have to go to use illegal sites, he added.

Peter Sunde, co-founder of The Pirate Bay was not immediately available to comment on The Video Bay.

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