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0 pointsezfe2y ago0 comments

If Apollo keeps operating, it charges its users more and pays reddit $20 million for one year, and presumably continues paying that into the future.

If Reddit purchases Apollo for $10 million, then those customers now belong to Reddit. For the first year, Reddit would "only" earn $20 - $10 = $10 million, but after that those customers would continue directly earning revenue.

It's all about reasoning with the value of the app in terms of the api rates. Either the rates are unreasonable, or that would be a reasonable sale to Reddit.

0 comments

elpool22y ago

I'm not sure that math is right? If the API access actually costs reddit $20m/year then charging Apollo users $20m/year just offsets those costs. So in the first year they actually lose $10m, and just break even in following years. It only makes sense to buy Apollo if the api costs are low.

Dylan168072y ago

> If the API access actually costs reddit $20m/year

Do you think anyone believes that to be true?

elpool22y ago

Not at all. But it seems like the Apollo dev’s argument was “if it actually costs reddit $20m they why not buy Apollo for only $10m”, which doesn’t make sense.

This doesn’t make what reddit is doing any more reasonable though, imo.

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0 pointsezfe2y ago0 comments

If Apollo keeps operating, it charges its users more and pays reddit $20 million for one year, and presumably continues paying that into the future.

It's all about reasoning with the value of the app in terms of the api rates. Either the rates are unreasonable, or that would be a reasonable sale to Reddit.

0 comments

elpool22y ago

Dylan168072y ago

> If the API access actually costs reddit $20m/year

Do you think anyone believes that to be true?

elpool22y ago

Not at all. But it seems like the Apollo dev’s argument was “if it actually costs reddit $20m they why not buy Apollo for only $10m”, which doesn’t make sense.

This doesn’t make what reddit is doing any more reasonable though, imo.

1 more reply

j / k navigate · click thread line to collapse