Think about this logically, page-35

That is true that some of the money goes into the group but the majority of it remains with Crowd1 especially in the example given above as having 50% of their 10M members take up miggster and sign up a friend would of given EM1 70M in one month but this also doesn't take into account the growth of the crowd1 network which is now at 20M but was growing by a mill every couple of days.

Also no one from crowd1 owns a significant portion of EM1, as the only people above 5% is VBS exchange and Stephen Silver (maybe Luka a Croatian guy who developed GBG which was canned). However yes if they were looking at taking over they would of likely taken/bought 20% of that MC at 3c so realistically they would of only needed to fork up 24M of a multiple instead of the 30M.

There would of been risk reward as always because if they weren't successful they would still have owned 20% of the company so even if the deal went ahead as a revenue share they would of profited from it however I think this gets into murky water for insider trading with all of this and CBF looking into it as the situation hasn't happened and I am not in the position to through 6M at EM1 (or another asx) stock to look at doing a takeover.

However logically it would make more sense to buy the company out than give away 64.5% of the revenue that is coming in, yes there are prizes that EM1 are paying for but the majority of the 64.5% is gross profit (IMO).