It’s official: as we confirmed earlier, Disney (NYSE: DIS) has acquired iPhone game and app developer Taplulous and is bringing the entire team in-house. Co-Founders Bart Decrem and Andrew Lacy will be SVPs at Disney Interactive Media Group and oversee DIMG’s mobile group, with Decrem, who has been Tapulous CEO, also as GM reporting to DIMG President Steve Wadsworth. I just got off the phone with Wadsworth, who would not disclose a price for what is being called a merger. “The whole mobile media space is an incredibly high-growth category,” Wadsworth said in his interview following the announcement. “This broadens our footprint.”
Original: Disney is adding iPhone app powerhouse Tapulous to its interactive arsenal, TechCrunch reported and paidContent has confirmed. My understanding is the company will be part of the Disney Interactive Media Group, which includes the company’s Disney Interactive Studios, mobile and licensing, although it is not clear whether co-founder and CEO Bart Decrem will stay. The companies have yet to respond to requests for comment.
Palo Alto, Calif.-based Tapulous was one of the first iPhone phenoms, taking full advantage of the device’s touch potential to create the popular Tap Tap Revenge, which grew to 30 million users, then adding sequels and new games. Riddim Ribbon, developed with will.i.am, was the top grossing app within days of its launch in February. It now offers more than dozens of apps, usually using the freemium model to encourage play and then upselling to full access or selling songs.
The ability to build games around musical artists may be particularly appealing to Disney — think Tap Tap, Hannah Montana or Tap Tap, Camp Rock or go adult. Tapulous currently has music apps for Nickelback, Coldplay, Metallica and Lady Gaga; last month, it added a deal with Warner Music Group (NYSE: WMG).
Tapulous is one of the companies frequently featured by Apple (NSDQ: AAPL) during its announcements, and has sworn off developing games for other platforms until they likely become too big to ignore. Despite its narrow focus, it has done exceedingly well, especially for raising only $2.8 million as of Dec. 2009. Initially, the company charged for the app but discovered that it was more profitable to give it away and make money through advertising and by selling songs in the app. Late last year, the company said its sales are approaching $1 million a month and that the company was profitable. At that same time, its flagship app, Tap Tap Revenge, had been downloaded more than 20 million times and played a total of more than 600 million times.
With the company raising such little capital, you can expect this exit to be very profitable for all of those involved, including investors such as Khosla Ventures and Salesforce.com CEO Mark Benioff. Likewise, Disney has scooped up a money-making and profitable mobile gaming company, which not too many startups can claim.
Co-founder and CEO Bart Decrem spoke at our recent paidContent2010 conference earlier in February. Video is embedded below and more highlights are here.
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