> 2. The $10M buyout comments was a reasonable comment countering the statement that reddit loses $20M each year by users using Apollo. A comment which was a half-joke, as the audio recording shows clearly. In that case, buying Appolo for $10M would have been a steal and Reddit would have jumped on it. They didn't, their prior statement was probably a lie.
If something loses me 20M$ per year and I have an option to buy it for 10M$ or kill it for 0$, I would choose the latter without much thinking. And that seems to be exactly what Reddit is doing.
And that is something that any client using a third-party platform should expect that will happen eventually.
That sounds completely reasonable - if you assume the users currently on Apollo 1) Can't be made to pay, directly with a price for the app or micropayments or indirectly via ads 2) Would move to the official app if Apollo shut down and 3) Don't bring in posts and comments with which other users engage, raising money that way.
Sounds to me that shutting it down is the one sure way to lose money, but I also don't trust that the reddit team had made that calculation properly. This all seems like a short term profit or like a power play to me.
> If something loses me 20M$ per year and I have an option to buy it for 10M$ or kill it for 0$, I would choose the latter without much thinking.
Weren’t the $20M reddit claimed they are losing, missed opportunity costs? I.e. if Apollo users wouldn‘t use Apollo but the official app, they would make that amount of money off of them. So buying that amount of revenue for $10M sounds definitely reasonable to me. If what reddit claims would be truthful that would be a guaranteed 100% ROI.
Would those users continue using Apollo after Reddit bought it and filled it with ads or would they start to slowly drift away to other clients over time?
If something loses me 20M$ per year and I have an option to buy it for 10M$ or kill it for 0$, I would choose the latter without much thinking. And that seems to be exactly what Reddit is doing.
And that is something that any client using a third-party platform should expect that will happen eventually.