Well back then that was the only option, Jon didnt have the cash to pay the $300 odd dollars for hosting.
They didnt have the "right to it," they simply had the advertising rights to it as long as they hosted it. It was an option that we needed to take at the time and we could get out of at any moment, which we did after about a year.
Think of it this way, HitEmUp.com was vitamin water and this company was Coca-Cola, they bought us out by paying all of our bills but we remained in creative control. We then decided to break free which we did.