The issue is pretty plain and simple: * Our Office Manager explored several options, including Wikia; * We've suggested to Wikia a fair market rate based on the average of the other options we obtained; * After some negotiation, Wikia accepted. Weighing other pros and cons of the space against other options, we decided to go with Wikia; * Neither Jimmy Wales nor anyone else involved with both WMF and Wikia was involved in this decision-making process, to avoid any conflict of interest.
I know that Wikia/WMF related stuff is pretty exciting, but really, we have work to do. We're not going to not make a decision that is right just because it creates fodder for trolling. (And I hope that if this turns into a troll-fest, the list moderators will take appropriate action.)