Fresh details have emerged that Kenyan news portal, Ghafla, was bought for a cool Ksh60 million by Swiss firm, Ringier. When the site relaunched last month, dropping its purely entertainment news policy to embrace politics, current affairs and analysis, the impression given was that the two had entered into a partnership.
Ghafla founder Samwel Majani had also earlier denied that the company, in which he owned 85 percent shareholding, had been bought out. But though he was retained as co-CEO after the relaunch, Business Today understands that that he was completely bought out but was asked to stay for one year to aid the transition. This means Mr Majani pocked Ksh51 million from the sale of Ghafla.
A media invite sent out ahead of the relaunch initially indicated it had been bought by Ringier AG. However, the position changed thereafter with the official line being that it had entered into a partnership with Ringier Africa Digital Publishing.
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“The partnership with Ringier and relaunch consolidates Ghafla’s position as Kenya’s top entertainment news brand, as well as signals a new strategic direction in terms of expanding the editorial scope to include more politics, current affairs and international news stories, to further increase the popular platform’s followership. The redeveloped platform will also look to significantly increase its video and new media content, across all content sections and channels,” Ringier said in a statement.
Mr Majani added: “I am very proud that Ghafla, which started in a Kenyan bedroom seven years ago, is now partnering with one of the largest African media enterprises. This partnership will give us access to international know-how and will ensure that we can learn from and apply the global expertise that the Ringier team brings with it.”
It is not clear why Majani, who cofounded the company while still a student at Kenyatta University, does not want to come clean on the deal, one of the biggest in Kenya’s budding digital media sub-sector. But having rebuffed an earlier attempt by Radio Africa to acquire the site, it was always suspected that the Swiss deal was too lucrative to reject.
He was in JKUAT not KU
That is a cool US$500,000 buyout!Kenyan online companies are going places. Hope to see more of this buyouts in the coming years. Kudos Majani!