In my opinion, Mike Arrington is out of line posting about this situation. There is little doubt he has a personal stake here. The bad blood between him and Sam Sethi is well documented.
Mike would have been better served staying mute on the subject (in my humble opinion).
Instead he posts an un-executed term sheet.
Poor form, Mike.
When Oliver Starr (former MobileCrunch writer) attacked employer Sam Sethi (former TechCrunch UK writer), the person who currently controls Blognation, in a 3,000 word diatribe, a lot of people came to the conclusion that Blognation was dead in the water. The chain of screw ups was just too long. Sethi had an emotional explosion and threatened to kill his cofounder over a legal dispute. He reportedly lied to his editors flat out that hed raised a £1 million (more here) so that theyd continue to work for free. He allegedly forged bank transfer documents to stall for time. To sum things up, even when Sethi had something truthful to say, he apparently lied anyway just to make things more interesting.