Whoa, hang on a minute. This link does indicate that some business relationship has started, but the details of that relationship is unknown.
Hopefully, she is able to negotiable a more favourable deal for herself and have better control on the startup she created. The original deal as stated in the NYTimes articles is pretty crappy.
Much easier to stay motivated with 25% of a growing company vs a larger share in a failing company. Hopefully she negotiated some better terms, and has some protection from being pushed out and diluted. If so, this could end up being a very lucrative first business for her even if she doesn't make her earn out.
That depends on ones frame of mind, doesn't it? If you consider that buy-in a failure - and who in that situation wouldn't? - Would you really be able to push on after that? Would you really want to?
If she maintains control, then sure - that might work, depending on how large amounts of sale she can gain from this move. But 25% doesn't smell like control to me.
Hopefully, she is able to negotiable a more favourable deal for herself and have better control on the startup she created. The original deal as stated in the NYTimes articles is pretty crappy.