MXit selling price speculation
World of Avatar announced in September 2011 that it had acquired 90% of MXit for an undisclosed amount, with 10% remaining in the hands of its staff via a trust. Both previous shareholders, MIH Holdings (a subsidiary of Naspers) and Herman Heunis have sold their entire shareholding in MXit.
To date, the exact amount for which MXit was sold was a closely-kept secret, with rumours suggesting that the selling price could have been as much as R500 million.
Well-placed sources have now pinned the MXit selling price between R320 million and R380 million. Naspers, World of Avatar and Herman Heunis, however, are not saying much.
It is understood that a very strict non-disclosure agreement (NDA) prohibits anyone involved in the negotiations to reveal the selling amount, explaining the reluctance of the parties involved to discuss the issue.
MXit’s new CEO, and World of Avatar founder, Alan Knott-Craig Junior explained that he would like to play open cards, but that confidentially agreements prohibit him from doing so.
“We are bound by our confidentiality agreement, which determines that the transaction price not be disclosed, and are therefore not able to comment on the details of the MXit transaction,” Naspers told MyBroadband BusinessTech.
At the time of the transaction, MXit had over 43 million registered user accounts in over 120 countries, making it Africa’s largest mobile social network.
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