Popular Reddit client Apollo will shut down after talks over new developer fees got 'ugly, with allegations of blackmail
, which could explain why it's delayed a public offering in the current environment. Charging for API access could help bring in more revenue.Among Selig's allegations is one that Huffman stated in a phone call that Selig was blackmailing Reddit with a suggestion that the company buy Apollo for $10 million in order for him to"go quiet." But Selig had earlier clarified on a call with Reddit staff that he was being misinterpreted.
"As said, a common suggestion across the many threads on this topic was 'If third-party apps are costing Reddit so much money, why don't they just buy them out like they did Alien Blue?' That was the point I brought up," Selig writes."If running Apollo as it stands now would cost you $20 million yearly as you quote, I suggested you cut a check to me to end Apollo.
Reddit employees on the call initially interpreted his suggestion as a threat, according to Selig. Despite clearing up the situation and staff acknowledging that Selig wasn't making demands, Huffman allegedly later said on a separate call that Selig had threatened he would cause trouble if Reddit didn't give him a large payout. Selig recorded his initial call with Reddit's team, and published transcripts he says support his allegations.
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