Buy only a few apps with strong organic traffic and invest in their teams

David BarnardYeah. So, in that third category that you were just mentioning that you lumped Blue Throne into, there is a very wide spectrum. And so, I'd say there is the Blue Throne 1.0 of buying a ton of apps, looking at more a financial instrument. So, tell me about Blue Throne 2.0, though.

Josh PelegSo, Blue Throne 2.0, and it's a great question, essentially we learned our lesson that buying this kind of wide, diverse portfolio of apps doesn't really work because you're buying financial instruments. And at the end of the day, we were apps guys and we knew apps, and our team was made up of guys from mobile gaming, like myself, from ad tech and from consumer tech. So, Blue Throne 2.0 is really about finding apps that have found product-market fit, that have a lot of organic traffic, which is a great signal for us because it means no one is being paid to download your app. They found it out of word of mouth or K-factor or just searching for something on the App Store themselves. And these product-market-fit apps have enabled themselves to rise to mid or top of their category by providing a deep product experience that solves the issue they set out to solve. That's the first thing.

Josh Peleg… a significant brand image. They have really strong organic traffic. They have great retention, great resubscriber rates, and of course, a killer founding team. Now, sometimes the founding team wants to stay, and that's great, we love that. We've had people stay with us for three years. Sometimes they want to take their money, buy a house, buy a car, pay off their parents' house and go. That's also fine with us. The whole deal structure is about finding what works for both parties. But that strategy we've been employing for about two-and-a-half years now. And it means our portfolio is much smaller. We now have a portfolio of five apps. I saw your face. Yeah, looks a bit surprised there. It's true, it's only five apps, but each app is either a product leader in its category or on its way to be. So it's a completely different strategy, but luckily, it's working well for us now.

David BarnardI've talked to the founders of Blue Throne a few times over the years. And so I knew Blue Throne as the old strategy where there was, like, 100-plus apps in the portfolio. And so when you told me that Friday, and then when you told me again today, it is surprising because it's not what I remember and think of Blue Throne as. But it's obviously a whole different ball game. And, I mean, personally, if I were in the app-acquisition space, this is …