We were shell-shocked when Global Gaming Factory X AB, a Swedish software corporate, announced it was acquiring The Pirate Bay for $7.8 Million. The Pirate Bay, the world's epicenter for torrents and illegal P2P file distribution, sold to a company that intended to give it a new, legal business model? It sounded too insane to be possible.

I guess we shouldn't be shocked then to learn that The Pirate Bay acquisition may not happen after all. Multiple sources are reporting that the acquisition may be cancelled in one week's time if Global Gaming X AB can't provide investor guarantees. It doesn't help that the major studios are suing it, either.

Just a strange series of events

The basic story is this: after Global Gaming made the deal public, it hired Wayne Rosso, the former head of Grokster, to negotiate with music and film giants to get legal licenses to their content. He specifically told CNET that he doesn't think that Global Gaming even has the funds to make the deal happen, and that the Global Gaming hasn't been straightforward with him. Thus, he's left Global Gaming:

"I and my colleagues have very strong doubts that the funding is in place," Rosso said. "And there are other issues regarding Mr. Pandeya's credibility that trouble us greatly."

The second nail in the coffin is a lawsuit that nearly a dozen studios have filed to shut The Pirate Bay down, including Disney and Paramount. Their claim is that The Pirate Bay hasn't stopped their activities after being sentenced to prison. There's also a separate lawsuit already in progress by the four major music labels.

Combine the lawsuit with losing Rosso and apparent funding problem and you can see why the Pirate Bay acquisition is in doubt. The Pirate Bay saga is just keeps getting stranger.

Are your surprised? Let us know in the comments.