Entrepreneur made millions of dollars selling the same app to two different companies
He has made millions - by selling the app twice
An entrepreneur sold two versions of the same app to two big tech giants - and made millions in the process.
Nikita Bier is the mind behind 'tbh', an app that allowed high school students to compliment each other anonymously.
Nine weeks after it was launched in August 2017, the app was bought by Facebook for a whopping $40 million.
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By the time that Facebook had scooped up the app, it had been downloaded 5 million times and secured 2.5 million daily users.
Users were able to create polls about their peers, always with a complimentary edge such as: "Best to bring to a party?" and "Most likely to become a poet?"
Although the app peaked at number one in the US app store in October of that year, the app was soon discontinued in July 2018, with Facebook citing 'low usage'.
Bier was reportedly locked into a five year non-compete agreement, meaning that he couldn't bring his idea to another company.
Once that expired last year however, he set about bringing his idea back to life.
In January 2023, Bier sold a virtually identical app to Discord - although this new iteration would have one key difference.
The new app, Gas, allowed users to be given hints about who is anonymously complimenting them, once they paid towards the feature, aptly named 'God Mode'.
Since its launch in the summer of 2022, Gas has been installed 7.4 million times and received almost $7 million in consumer spending.
It even briefly dethroned TikTok when it became the most downloaded social media app on the Apple store, leading The Wall Street Journal to brand Gas 'the hottest app right now'.
In a blog post announcing the acquisition of Gas, Discord said: "Gas’ founders have a proven track record of creating exciting apps and experiences, and we’re thrilled to work with their team to take things to the next level.
"At this time, Gas will continue as its own standalone app and the Gas team will be joining Discord to help our efforts to continue to grow across new and core audiences.
“Gas is all about uplifting and empowering each other through positive affirmations. Its tremendous success shows the opportunity that exists in creating a playful yet meaningful place for young people."
As of October 2022, Gas was being run by a team of four, who have now joined Discord to help run the app.
Topics: Facebook
Ben Thompson