step 2) realise you don't have any moni to advertise

This

I'm not entirely sure; it just seemed like the kind of amusing half-baked idea that would be perfect for a shitpost.

1. Fediverse ferderates with Threads.
2. ??????
3. Profit

Here's a thought: Threads is aiming to be some ultra sanitized, advertizer-freindly, politics &news free bland ville. You know, the kind of place where people have ultra shallow discussions about the weather over fake smiles.

EEE that shit. Give em a taste of critical thinking, hot takes, poop jokes and bean memes, and a bit of NSFW and moral degeneracy. And I'm not talking about that alt right shit. Give corporatelandia a taste of the real world: messy, raw, unfiltered discourse. Maybe some John Oliver for good measure.

What I am saying is, just be yourselves over there. They'll defederate ASAP.

Tldr: it's a philosophy Microsoft has used extensively in the past. You join in with a new industry then simply outspend the competition making it harder and harder for them to compete just because they are not the size of you or as already entrenched in other areas. The last E, extinguish is for things they don't like. They become the monopoly player then shutdown their own product/service, and now it's gone

Read the title

(I also skipped the title and was confused for a minute)

Not being snarky, but Google "Embrace, Extend, Extinguish" for some interesting context for what Meta might be trying to do with Threads.