DropSend Transfer App for sale - some thoughts

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iShopr reported last night that Carson Systems is seeking a buyer for DropSend, their file transfer web application.

Ryan has a great reputation in the industry and so finding a buyer shouldn't be difficult. He is blogging about the sale on his Bare Naked App blog. Some excerpts from his posts:

Here are the type of companies that have expressed interest:

  1. Hosting companies
  2. Software companies
  3. Browsers
  4. Small, medium and large web app shops
  5. Web design companies
  6. Email hosting companies
  7. CRM companies
  8. Various entrepreneurs

We’re going to be revealing:

  • How much revenue DropSend brings in each month
  • What the rate of revenue growth is each month
  • How many active users we have
  • How many users are on each plan (Free, Basic $5, Standard $9, Pro $19 and Business $99)
  • How many users access DropSend through the desktop tool versus the web interface
  • And more …

If I put my accountant hat on for a minute (been a while since I wore it!), I would be against posting in the public domain the items in the "We're going to be revealing" list. I think it sets up some potential issues for real buyers. Some buyers would want to keep that information private and it really is no one's business except the buyer and the seller. The new seller can choose to publish this information but it should be up to them.

Now, of course someone will buy it and my point will be moot but I still believe that while openness is good and socialization is hot, we must remember that business is still business at the end of the day.

With all of that said I wish much luck for a great sale to Ryan, Gillian and the whole team!

from Voodoo Ventures - Idea Fuel Blog on November 6, 2006 - 12:15pm

Our friends over at Carson Systems have announced that they are selling their online files storage solution DropSend. It’s exciting to hear that they are selling this service, as it has grown over the last year to 45,000 users (as reported by Ry...

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Submitted by Chris Mear on November 7, 2006 - 5:51am.

Some buyers would want to keep that information private and it really is no one's business except the buyer and the seller. The new seller can choose to publish this information but it should be up to them.

Your point would make sense if this was happening after the sale: that is, Carson Systems was releasing recent historic data for a company that was now somebody else's property. As it is, this disclosure is happening before the sale, so any potential buyer who doesn't like this kind of openness is free to walk away.

It's Carson Systems' decision to market the item in this way, and if it means that they don't get any buyers, well, that's their problem. I agree that it's pretty a non-standard way to go about it, but I don't think you can argue that it's unfair on potential buyers.



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