[az226]

My understanding is that Reddit is saying that by not charging for the API they are losing $20M per year. So he said, well you can buy me out, and instead of doing a multiple of that $20M to be like $100M, he’s only asking for half of only one year’s worth of what they would lose. Clearly they don’t want to do that deal because the $20M figure is complete bogus.

[toymin]

but there’s no incentive for Reddit to pay any money, they either start charging for the API and recoup the costs or the app shuts down and it starts costing Reddit absolutely nothing

[xelhark]

The cost for reddit as stated in another part of the call is an opportunity cost. By acquiring Apollo instead of shutting it down they would seamlessly acquire a lot of users who would have a hard time adjusting to the native app and potentially leave the platform, so this call is still a cost to them.

[ilikecode]

The app shutting down does not automatically cost nothing. If all users move to the official app the server resources still are used but the users would at least see ads.