Why Knott-Craig quit Mxit

The move follows a disagreement with shareholders, who include former FirstRand executives Paul Harris and GT Ferreira. By Duncan McLeod.

Added by Duncan McLeod on 18 October 2012.
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Alan Knott-Craig

Alan Knott-Craig has resigned as CEO of Stellenbosch-based social networking and instant-messaging service Mxit after disagreeing over strategy with major shareholders in the company, who include former FirstRand executives Paul Harris and GT Ferreira.

Mxit is 90% owned by World of Avatar, whose significant shareholders are the “family interests” of Harris, FirstRand’s former CEO, and Ferreira, the financial services giant’s former chairman. Meanwhile, Cape Town-based technology news website Memeburn is reporting that Knott-Craig has also stepped down as head of World of Avatar, which he had founded.

Knott-Craig’s decision to quit follows a move by the shareholders to invest R100m into Mxit to fund the expansion of the business.

Company insiders say the shareholders wanted someone with a different management style to lead the company. “They wanted someone who was a little more structured,” one insider says. “Alan is quite unstructured in the way he does things.”

World of Avatar bought its controlling 90% stake in Mxit from media group Naspers and from the service’s founder, Herman Heunis, just over a year ago. The value of the deal was not disclosed.

“While the shareholders and I share the same vision, we differ on how to get there,” Knott-Craig says in a statement. “Therefore, I agreed to go my own way. I wish them all the best for the future. Mxit is Africa’s biggest tech success story, and can be a global success story.”

Knott-Craig, who is the son of Cell C’s CEO — the pair share a name — said in the statement that he would not be drawn further on the issue.

Mxit chief financial officer Francois Swart will act as interim CEO until a permanent replacement has been found.  — (c) 2012 NewsCentral Media

Share this article

  • Matthew Bentley

    Surely you’re referring to AKC Jr?

  • http://www.techcentral.co.za/ Duncan McLeod

    Yes

  • http://twitter.com/inqolobaneyes Inqolobane Yesizwe

    It was a rubbish deal to begin with. Mxit has no future. Even if Herman goes back, there is no stopping the Americans.

  • Biscuit1018

    Apparently he doesnt love being called Junior anymore

  • teklemon

    Lol. Very over rated individual who has made deals becos he has millions but has not yet delivered any creation of his own.

  • http://twitter.com/mrally Nisaar Ally

    exactly .. JNR
    Do wish him all the best in his new ventures

  • vincentmaher

    Alan is in no ways over-rated. His team love working with him and it is because of his vision and strategy that the company will succeed over the coming years.

  • Robbie

    LOL

  • Richard Longden-Thurgood

    Says the guy who was just bought out by him. Definitely no bias in this statement.

  • Kevin

    says the guy who looks like he ate his way out of a whale

  • Garth

    Not surprised by this – AKC seems well meaning but naive and inexperienced. I wouldn’t buy anything from Naspers, you can be sure those leeches will have drain the blood out before they sell. This purchase is a disaster, I would have thought some of the big names would have been smarter.

  • ps246

    and here i was thinking it was because he realised MXIt is on the way out.

  • http://twitter.com/mikewronski Mike Wronski

    10 million people beg to disagree with you. Yes, MXit’s future is uncertain, but there is light at the end of the tunnel if MXit innovate their technology and gameplan enough.

  • Greg Mahlknecht

    Apps like Whatsapp are growing rapidly, and Mxit is barely holding onto its user base. In a rapidly growing market segment, standing still is as bad as sliding backwards. I love it when South African tech companies take the world by storm, but this isn’t it – I fear Mxit’s blown its chance.

  • http://twitter.com/scrookson Sean Crookson

    Vincent Maher is a former employee of Vodacom, hence the bias. Always trying to deceive are their employees and devotees (*sigh*).

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