RadioTime Buys Successful iPhone App TuneIn Radio, Hires Its Creator

RadioTime, a Dallas, Texas-based provider of applications for finding and listening to online radio stations, has acquired the TuneIn Radio iPhone app, one of the best-selling and highest rated Internet radio applications for iOS devices.

Terms of the acquisitions have not been disclosed, but I’m told the deal was part cash, part equity. The developer of the TuneIn Radio app, Ben Alexander, was hired by RadioTime to oversee the development of the company’s iPhone and future iPad applications.

Here’s the link: the TuneIn app features the RadioTime directory of AM/FM and online-only radio stations airing in 140 countries and broadcasting in 55 different languages.

TuneIn is said to have been the first Internet radio application to turn the iPhone or iTouch into a DVR for radio, enabling users to pause, rewind and record live radio programs, and search for music and programs by the names of artists or on-air personalities, specific songs, station call letters and genre.

According to the press release announcing the transaction, more than 700,000 iPhone and iTouch owners have purchased the $1.99 TuneIn app in less than a year.

In Alexander’s words:

“I have realized the dream many independent apps developers share of having my app become a best-seller on iTunes, which is very difficult considering there are more than 225,000 apps and counting available for the iPhone, iPad and iTouch (sic).”

If I’m reading these numbers correctly, that means the app has grossed close to $1 million in less than 12 months (taking into account the 30% commission fee on sales that goes to Apple), which leads me to believe this particular one-man venture had a pretty good exit.