TBH Facebook Sale Terms
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A story about how Nikita Bier sold his app TBH to Facebook and later created another similar app called Gas.
"He built an app called TBH that let teenagers quiz about people in their school - like 'who's the most cute boy' or 'who's most likely to be famous.' It would text them saying 'somebody said you're cute' and tell them to download the app. It immediately went viral.
Facebook bought the thing because they have this internal system that says 'viral teen app - must acquire.' People said it was $100 million but it was more like $30-40 million. The app got shut down within a year because there was never any retention.
He then sat at Facebook for 4 years and vested out every cent of his earnout, which is hilarious in its own right. All he did was tweet all day - he worked in the new products division and half-released some apps.
Then he leaves Facebook and does the same thing again. He creates another teen app for compliments. He told us in advance, 'I'm gonna make an app that makes $10 million in 3 months.' We laughed it off but he pretty much did it - Gas app made $7 million in gross sales in about 3 months."
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.