THE NEWS WRAP: Megaupload’s Kim Dotcom launches political party

Controversial online file sharing entrepreneur Kim Dotcom has announced he is joining the likes of Julian Assange by forming his own political party.

Dotcom, born as Kim Schmitz in Germany, is best known as the founder of the highly encrypted online storage site Mega, which is planning to go later this year, and Megaupload, which was closed amid allegations of massive copyright infringement.

His newly formed Internet Party will contest the New Zealand elections in September, with the formation coming after New Zealand police raided Dotcom’s rented mansion near Auckland at the request of the FBI.

“The raid on my family with two helicopters and 72 cops with machine guns, the illegal spying against my family, the unlawful restraining orders – I felt it was a gross abuse of power,” Dotcom told Reuters.

Google’s 32% growth in profits disappoints Wall Street

Google has reported a 32% year-on-year increase in first quarter profits to $US3.45 billion, with revenues up 19% to $US15.4 billion.

“We got lots of product improvements done, especially on mobile. I’m also excited with progress on our emerging businesses,” chief executive Larry Page said in a statement.

However, the result failed to meet Wall Street expectations, with analysts expecting revenues of $US15.5 billion, leading to the tech giant’s stock tumbling 5.7% in after-hours trading.

Tokyo court rejects bid to resuscitate Mt. Gox

Bitcoin exchange Mt. Gox is likely to be liquidated after the Tokyo District Court rejected a bid to resuscitate the business, with chief executive Mark Karpeles likely to be investigated for liability.

The company filed for bankruptcy in February after revealing around 850,000 of its investors bitcoins had been stolen by hackers, with a total value of around $US454 million.

“The Tokyo District Court recognised that it would be difficult for the company to carry out the civil rehabilitation proceedings and dismissed the application for the commencement of the civil rehabilitation proceedings,” provisional administrator Nobuaki Kobayashi said.

Overnight

The Dow Jones Industrial Average is up to 16424.8. The Aussie dollar is down to US93.75 cents.