[az226]

The point here is, if Reddit thinks the user base is worth $20M per year, paying $10M to take over the app and implement ads on it, would be a steal. They’d return the money in 6 months. Usual payback periods are like 4-8 years. Clearly the $20M is BS because otherwise they’d done the deal on the spot.

[markmark]

They would only do the deal on the spot if that was their only option. But they have the option of spending $0 and having the majority of the users moving to the official app.

[Domenic_S]

This is an example of the same thing being worth different amounts to different parties, and the equivocation leads to comments like this thread.

If Apollo's userbase was actually generating $20mm/yr, acquiring Apollo for $10mm is a no-brainer. But if that were the case, keeping Apollo running as it is would also work.

Obviously this is not the case. Apollo is confusing costing $20mm with generating $20mm.