Don't know Mochi Media but this is the very type of downstream risk for founders that Delaware poses - once VCs control a company, they can cram down a merger or sale without needing to get the consent of those who control the common stock (i.e., the founders).

In California, they would need the approval of both classes of stock to do such a cram down and it could never happen unless the founding team approved.

I have posted on this on this site ("Why not to incorporate in Delaware"). See my profile under "submissions" for the link.

Transparency would be great, instead of back-room dealings.

One of the reasons why I like sites like http://thefunded.com

For too long, bad behavior has been allowed as long as it stayed hidden from public view.