Ted Elliott

For how much?

For $12 million.

On what revenue at that time?

Zero.

And they asked for 60 days for due diligence.

I realized when they want 60 days for due diligence, I was hosed.

So I told them I needed a check for $3 million immediately.

So they became my initial shareholders when the internet crashed in April 2000.

And I had $3 million and no clue what the hell we were going to do with it.

No, they walked away because their business strategy massively changed once the internet ended.

And they ended up becoming equity holders in the business.

And I made a foolish decision to not end the business because I didn't want them to lose their money.

So I've carried them today as investors.

So we had structured the deal that if the deal failed, they would become preferred shareholders in the business on terms that no preferred holder would take.

It's actually a great story.

So there was a venture capitalist named Dixon Dahl, Dahl Capital, and he's a great guy.

I was in his office and he offered to sign a term sheet with me, but he had one provision.

He wanted me to fire my sister and my dad.

And I said to him, well, you know, I think I have some alternatives, but if I can't find a deal, you know, or I can't, if I don't execute the alternatives, I'll come sign the term sheet on Friday.

And so I got on the phone with this guy, Ross Hamachek, who had been CFO at The Washington Post.