Re:Apollo will close down on June 30th
by az226 on Thursday June 08, 2023 @11:14PM
(#36252668)
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.
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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.
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.