Shu also tells me that RIF was paying a “sizable revenue share” to Reddit beginning in 2012, which was during Yishan Wong’s tenure as CEO. Shu says he says initiated the talks with Reddit to create the agreement, which allowed for the licensed use of Reddit’s trademarks. (At the time, the app was called “reddit is fun.”) Shu says Reddit terminated the agreement in 2016 — which was the year after Huffman took over as CEO.
Holy shit the lede was a little buried from the title.
RIF had a revenue-sharing agreement with Reddit starting in 2012, and they had a working model to ensure that Reddit was compensated - and profited from - the API usage. RIF voluntarily worked out a deal to share it’s revenues back to Reddit. That deal was terminated after Spez took over as CEO, under his watch, and that cancellation is big enough that it absolutely would have gone via the CEO for approval. Spez decided to turn down the revenue share agreement with RIF, only to come back seven years later and complain like Reddit was somehow being taken advantage of due to the costs of app API usage.
What an absolutely meaty disclosure: the same problem Spez is complaining about now is a problem he personally caused shortly after rejoining Reddit.
Spez: “we don’t need their money!”
Also spez: “why aren’t we making any money‽”
Whaaaat? Spez wouldn’t just go on the Internet and lie, would he?
That RIF is fun had a revenue sharing agreement explains why they were able to keep Reddit in front the apps name when other 3rd party apps couldn’t. Corporate Reddit sounds like a nightmare to work with.
So… Spez lied again. Please raise your hand if you’re surprised?
Also they had a revenue sharing agreement that Reddit terminated in 2016 after Spez became CEO again?
Yo shoutouts to the Verge’s journalists. Theyve been documenting this whole debacle its crazy. Usually news articles arent that relevant in my day to day life so im surprised theyve been watching every development.
