As a reminder, there’s a megathread about all Reddit-related news here - please direct all discussion about Reddit there. Thanks!
There is the argument that these sites might not be able to be profitable to begin with…
Be it Twitter, Reddit or anyone else, I don’t know how taking drastic, sudden measures to tighten the purse-strings, while giving the middle finget to users would work to increase or maintain its valuation.
Reddit’s been on a death spiral for over a year. The API changes are a Hail Mary to try and generate money. This valuation is bad.
It very much isn’t a hail Mary to generate money, they’d have bent over backwards if they’d wanted to keep big players like Apollo and RIF on board, if it had been a hail Mary. 20 million bucks a year is nothing to be sneezed at.
The fact that they left Apollo out to dry shows that it never was about making more revenue, but rather to stamp out competition for their own app. As soon as it has accessibility parity with other apps, it’ll turn off API access for unofficial reddit apps alltogether.
