> Why does he suggest that they buy his app for $10m, when they can just terminate his API access at a cost of $0
Because according to Reddit, the problem with Apollo is the opportunity cost of Reddit not being able to monetize its users.
Acquiring Apollo is user acquisition. Destroying the app does not necessarily mean that all those users will now start using Reddit's official app and become monetizable, they might just quit Reddit entirely. By acquiring Apollo Reddit could monetize those users through Apollo instead of the official Reddit app.
> By acquiring Apollo Reddit could monetize those users through Apollo instead of the official Reddit app.
After what Reddit did to Alien Blue I don't know how many Apollo users would be too keen on playing that game again. I personally have no confidence that a Reddit owned Apollo would retain what makes the current app great.
Because according to Reddit, the problem with Apollo is the opportunity cost of Reddit not being able to monetize its users.
Acquiring Apollo is user acquisition. Destroying the app does not necessarily mean that all those users will now start using Reddit's official app and become monetizable, they might just quit Reddit entirely. By acquiring Apollo Reddit could monetize those users through Apollo instead of the official Reddit app.