Interesting development at Mxit. Daily Maverick reports that Michael Joordan has just taken up with South African mobile social network, Mxit. The former FNB CEO will be acting in the role of chairman on Mxit’s board of directors.
This is a fairly big deal. With an impressive track record of award winning mobile and technology innovation at FNB, Joordan’s involvement could prove to be a coup for the mobile startup. If nothing, it would at least calm the anxious nerves of its previous big name investors. Mxit has been decidedly quiet since its flashy acquisition of Motribe and the very surprising exit of former CEO, Alan Knott-Craig, to much industry rumour and speculation about the health and future of the business.
Amid dwindling engagement, staff cuts, and a search for its place in the world, as a horde of messaging and SNS networks bear down on its territory, Joordan is of the opinion that Mxit’s true opportunities lie outside of South Africa, leading us to believe that he will be working with the company on international expansion strategies.
Even if the particular ways in which Mxit stands to benefit from this relationship isn’t that obvious at this point in time, the reaction is positive overall. What is not clear however is what’s in it for the South African finance veteran and business thought leader. Michael Joordan has said he is not being paid, is taking no shares (although the option to do so later exists) and will likely be putting his own money in later.
It is the last prospect that might be interesting. If one is going to bet on what looks to be the most promising venture in South Africa’s mobile and tech future, what better way to do investor due diligence than from the inside, even if in a non-executive capacity?
Source: Daily Maverick
