I guess we knew this day would come. I'm surprised they didn't just decide to sell it back. Perhaps Derek would want to keep running it? They were pioneers in identifying the Flickr/dSLR aesthetic, and there remains a void there in the coming HD dSLR video revolution...
This reminds me a lot of the power struggle behind GovWorks if anyone has ever seen the documentary Startup.com. One founder wanted to keep things true, transparent, and stick to the roots while the other wanted to go big, change the way things worked and in the end the more passive ended up walking away. It's kind of depressing how these stories all end the same: the company goes bottom up