Both are bad choices. When reddit says open /r/pics or else, you just delete /r/pics.

Reddit has NEVER been profitable. It's the classic:

Takes a bunch of venture capital funding

Builds a huge user base

Get bought

Parent company tries to figure out a way to make money off of you.

When they can't, they try to spin you off and IPO you.

You have your "oh shit" moment and realize you actually have to be profitable now.

This is the crap that caused the dot-com bubble in the late 90s.

Their current business model is unsustainable.

They're doing the API war out of sheer survival.

The sad part is, we all went along for the ride, using the service and filling it with useful information, never wondering if it was still going to be there a decade or two later.

Reddit wants to IPO. Having gone through the IPO process twice now with a company, I can tell you, the only thing that matters is money in the bank. The more money you have in the bank, the more you can charge for your IPO. When I worked at CompUSA back in the 90s, we didn't pay any of our creditors for something like 6 months before the IPO to swell the bank accounts. I remember the week before the IPO, we had almost nothing in the store, because we owed everyone money. 30 days after IPO, trucks came rolling in again with product.

They're doing the API war out of sheer survival.

That would be true if they made i fees reasonable or at least gave more time. This change caused mobile apps to shut down. The revenue from that is $0.

This change sucks. But, from what I read, Reddit have NEVER been profitable. If they were smart, they would modified the API so it included ads. I don’t think Reddit is long for this world. Even if these protests were effective, reddit is eventually going away. They’re too big to make a profit now.

When you say “NEVER been profitable” is there a reliable source for that or is it spez?

Hosting a link agregator is cheap, it is purely just text. Yes they now host images and videos, and I think they shouldn’t do that if the cost is a problem, also they could always discontinue it.

Going back to the API. If they really need cash they could work with developers. They could reduce the fees and give 3 months heads up like they have been asked.

The whole spectacle didn’t sound “we need money to survive”, it sounded like “we could make more money from users by forcing them to switch to our crappy app, by shutting down 3rd party apps”

seekingalpha.com/…/4477033-reddit-unprofitable-de…

Nevertheless, like many IPOs, Reddit remains unprofitable. The question for investors is whether Reddit can achieve minimum viable economies of scale and achieve profitability. So far, there are no indications that this will happen.

There are few other sources that say reddit is unprofitale.

What I’m saying is that their core service doesn’t cost much to run. They could have small team to run everything and would make a lot of money, but their goal is to make it a billion dollar business, when it is not.

BTW: I also find the article funny, on one bad it says they are seeking $15 billion valuation, then it says it doesn’t generate money. So that creates a question, how come a company that doesn’t generate a profit costs $15 billion?