This was a competitive VC deal? Halsey Minor has been trying to get someone to take OpenDNS off his hands for quite some time now; he needs the money. Don't believe everything you read, kids.
Umm, why do you feel a need to downvote and reply to every criticism of this company?
Just because something is making money doesn't mean it is making enough money to be worth keeping around. Also, doesn't mean it's making as much money as someone thought it would. The VCs involved may have invested sensing a turnaround opportunity, or to combine OpenDNS with a portfolio company. I'm sure they received favorable terms for their cash.
Your claims of desperation do not jibe with one of the VCs being... Sequoia.