Megaupload server provider Cogent takes stock hit

Megaupload got shut down on Thursday, but one of the download site's server operators, Cogent Communications, got hit with its own issues on Friday as a direct result of Megaupload's problems. Reuters reports that Cogent's stock price took a tumble in trading, going down as much as 23 percent. The stock price finished the day down by over 18 percent.

Cogent's Washington DC server locations were searched by FBI agents after Megaupload was shut down and four of its officers were arrested and put in jail in New Zealand. According to the FBI's indictment, Megaupload paid Cogent as much as $1 million a month to run Megaupload's servers on Cogent's network. According to FBR Capital Markets analyst David Dixon, "... as a result, first-quarter revenue could decline sequentially."

Overall, Megaupload leased 36 computer servers in Cogent's Washington D.C offices along with a server location in France.

Meanwhile, another Reuters story states that someone else is trying to revive Megaupload on their own. The new site uses a different IP address than the real Megaupload site and is based in the Netherlands. Megaupload's lawyer Ira Rothken said, "We're not familiar with any official effort at this point to get the site back up in light of the fact that its major servers are in the possession of the United States government and other governments."

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Meanwhile, another Reuters story states that someone else is trying to revive Megaupload on their own. The new site uses a different IP address than the real Megaupload site and is based in the Netherlands.

its a fake

rippleman said,
megaupload should have went through 1and1.com only $3.95/month if paid for a year unlimited bandwidth /s

LOL

They could've saved a fortune.

rippleman said,
megaupload should have went through 1and1.com only $3.95/month if paid for a year unlimited bandwidth /s

1and1.com would of killed the account for violating the tos or the aup within the first month. unlimited != unmetered and usually they get you on that one.

shinji257 said,
1and1.com would of killed the account for violating the tos or the aup within the first month. unlimited != unmetered and usually they get you on that one.

Indeed, Mr. Killington. Not a day passes that I do not ponder the casual, misinformed banter that simpleminded folk partake in on regular occasions. I find uneducated humour spawned of the profound lack of knowledge to be distasteful and disrespectful in its very presence.

The site popping back up with requests for people to post the ip address on Facebook. Sounds like a phishing scheme.

I don't see a lawsuit. According to the gov't, Mega was piracy, and Cogent knowingly helped...so there's not much that would happen there.

joep1984 said,
I don't see a lawsuit. According to the gov't, Mega was piracy, and Cogent knowingly helped...so there's not much that would happen there.

Just like the state and county highway departments help drug traffickers, or the national forest services helps serial killers by not mowing the undergrowth right?

joep1984 said,
I don't see a lawsuit. According to the gov't, Mega was piracy, and Cogent knowingly helped...so there's not much that would happen there.


and you just sit there like a good little boy or girl and believe everything they tell you

joep1984 said,
I don't see a lawsuit. According to the gov't, Mega was piracy, and Cogent knowingly helped...so there's not much that would happen there.
there is report that says Megaupload was used in US companies more than Dropbox or any other page for business purposes, not piracy.
This is called freedom of exchange information ...

Now I demand to lock down all gun makers in US, because guns they produce kill people and to be honest same should happen with car companies if someone dies run over by their car

Snake89 said,

an another 500 jobs lost under the Obama admin.

Should we also count "jobs lost" when the FBI throws mobsters in jail or the DEA busts drug lords? We don't need to count busting criminals in the unemployment statistics.

Frazell Thomas said,

Should we also count "jobs lost" when the FBI throws mobsters in jail or the DEA busts drug lords? We don't need to count busting criminals in the unemployment statistics.

Except Megaupload was a legitimate business, nobody has been proven guilty, and the free exchange of information shouldn't be a crime despite what legislation some CEO pays for. Jobs were lost and that's that.

You have a phone call on line 2, Frazell. It's some big shot billionaire that needs you to help him sue the pants off of a single mother who peddles Rihanna because she's worse than a drug lord. What a joke.