Under the Radar 305: Selling Apps
Nov 7, 2024
Explore the intriguing world of app acquisitions, from the motivations behind selling to the complexities of valuations. Discover how some companies prioritize talent through acquihires, often sidelining the original app. The hosts share their personal experiences with selling software, revealing the emotional rollercoaster of letting go. Delve into the key factors developers should consider when weighing the long-term benefits of app development against immediate financial gains. It's a deep dive into the business of mobile apps and what truly drives their value.
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Planning for App Sale
- Consider the eventual sale of your app as part of your business strategy.
- This can be due to various reasons like retirement, loss of interest, or market opportunities.
Types of Acquisitions
- Most app acquisitions are not high-profile events like Pixelmator's purchase by Apple.
- Instead, they involve companies aiming to monetize existing user bases through ads and subscriptions.
Apps as Annuities
- Apps can be viewed as financial annuities, providing regular income over time.
- Potential buyers often aim to maximize short-term profits, unlike indie developers focused on long-term sustainability.