Office Hours: Tesla’s EV Charging Partnerships With GM and Ford, the Death of Reddit As We Know It? and Prioritizing Happiness When Making College Decisions

API Changes

Reddit's decision to charge for API access has sparked significant backlash from its community. Scott Galloway explains that while 90% of third-party apps will retain free access, larger apps face costs in the millions, leading to potential shutdowns like Apollo, which estimates a $20 million annual cost 1. This move has led to a strike by moderators of 7,000 subreddits, highlighting the tension between Reddit's community-driven ethos and its for-profit ambitions.

They're a for-profit company. They have investors that want to make money.

--- Scott Galloway

Galloway compares this to similar strategies by other tech giants, emphasizing the capitalist nature of these decisions 1.

   

IPO Potential

Despite the controversy, Reddit's IPO prospects remain strong. Scott Galloway notes that Reddit has been preparing for an IPO for years, with a valuation once estimated at $15 billion, though recent events have seen this reduced 2. He predicts that the current uproar will subside, and Reddit will eventually go public with a significant valuation 3.

My bet is that this passes and that Reddit goes public and that it's a monster IPO.

--- Scott Galloway

Galloway argues that in a capitalist world, users dissatisfied with Reddit's actions can seek alternatives, underscoring the competitive nature of the tech industry 3.