Think about this logically

If you stand back and think about the Crowd1 deal something doesn't really add up, the deal was made when they had 10M+ to which it has grown to 20M now. However with it being MLM they know the actual number of people as I get a feeling they are making up their numbers as it doesn't make logical sense this deal for Crowd1.

At the time of the deal announced the 7 day average was a fully diluted (this includes the unconverted options) had a MC of just over 35M which Crowd1 had at the time apparently 10M and were growing by a million every couple of days (so it seems). If you extrpolate that or even go of those 10M members and 30% of them convert they would of been able to buy EM1 on the average outright. Now given in this situation companies usually don't sell for the MC on a takeover it is usually multiples even 30% of their membership took out a subscription for Miggster and sold it to 1 friend/family each they would of received 72M for just one month but with this agreement they are handing over ~46.5M to EM1 which was more than their MC.

Now people might go maybe they didn't have the cash however they have low overheads as there really isn't an office for all these people, they don't really create their content but working off the minimum they would of received on 10M members in just over a year they would of received 1Bn so they should of been able to buy EM1 for 3-5x instead which working off 5x would be approx 70% of their member network at the time taking out a subscription and selling it to one friend (thus being 70% of 20M).

If the numbers we are being fed are true then I see no logical reason to do it as I'm sure everyone would of sold at 5x their price and Crowd1 would have a legitimate business under their umbrella that they could then utilise all for 1 month worth or a few months.



Happy to have a discussion on these numbers and refrain from any personal comments as this post includes no personal attacking comments to any individuals.