Also, the offer was super-cheap: Acquire a site with 1M uniques per month for $125K in cash (plus the same amount in highly volatile stock). That's barely a 6

Also, the offer was super-cheap: Acquire a site with 1M uniques per month for $125K in cash (plus the same amount in highly volatile stock). That's barely a 6 months of salary for the founder. Frankly, it's insulting. Even YC offers you a better valuation, and that's before you have any traffic :-)