Hacker News Reader

"In the settlement, 3taps, PadMapper and Lovely will collectively pay Craigslist $3.1 million — $1 million from 3taps; $2.1 million from Lovely and nothing from PadMapper. Craigslist has pledged to donate $1 million of that to the Electronic Frontier Foundation over 10 years."

They're not settling with $1M donation to EFF, they're still getting $2.1M from Lovely.

View on HN

And assuming 10 equal payments at the end of each of the 10 years, each percentage point of average return Craigslist sees on that $1 million they earn 55,000. In addition to a getting to presumably write off some portion(all?) of the $100,000 they would be donating each year for tax purposes.

So really they get more than $2.1M value out of this.

Edit: Yes, I realize there is no reason I should assume 10 equal payments over 10 years, given the information available. It was just the closest thing to an 'average case' I could define for a situation like this.

Actually if you read the settlement itself, it does explicitly say $100k per year for 10 years.

Reply on news.ycombinator.com