Disha is a platform based in Nigeria which allows digital creators to curate, sell digital content and receive payments from their audiences globally. According to TechCrunch, Disha had stated prior to the closing up announcement that it had successfully bootstrapped to more than 20,000 users. It even claimed to have a monthly growth rate of 100% at some point.
Three days after announcing the shutdown, Disha mentioned that it was thinking of new options for the company and would announce when a decision had been made about its future. That decision was announced when Flutterwave told TechCrunch in an email that it had bought the two-year old Disha. Earlier this month, a sharp-eyed Twitter user noticed that Flutterwave’s support documents housed Disha’s FAQs. This was a nod to the (possible) acquisition of Disha by Flutterwave. The FAQs were subsequently removed from Flutterwave in a bid to kill any suspicions before an official announcement was made.
Flutterwave quickly became a Nigerian favourite in October 2020 when the company set up a fund to assist the nationwide protest against Police Brutality. The fund set up by Flutterwave helped to raise over N25m before it was deactivated. The deactivation of the donation link was met with strong criticism from the young Nigerians who believed that the Central Bank of Nigeria was behind it, in order to frustrate the efforts of the young Nigerians trying to protest against police brutality and injustice.
Disha reportedly shut down due to low-income revenues; the company reportedly made slightly over $1,000 in monthly revenue. Even the ex-CEO of Disha confirmed that Disha showed clear signs of struggle, with limited resources and little revenue. Ex-CTO of Disha, Rufus Oyemade praised the recently completed deal with Flutterwave, saying that the deal had provided a way to drive value for creators while sustaining revenue and the business.
“We [the founders] decided to shut down the company because we ran out of resources to continue driving the very valid vision we had,” ex-CTO Oyemade told TechCrunch in an email. “With Flutterwave, we now have a way to drive both value for creators and revenue to sustain the business. We are happy to have gotten the call from Flutterwave, which actually kept hopes alive.”
Flutterwave has been rumoured to have acquired smaller companies in the past, but the company had never come forward to confirm those rumours. That was until Disha came along, and Flutterwave sent that fateful email to TechCrunch. The decision by Flutterwave to publicly announce its acquisition of Disha is a huge show of faith in the potential of the business deal.
United Kingdom Ordered Meta, Formerly Facebook, to Sell Giphy
The United Kingdom’s Competition and Markets Authority (CMA) has instructed Meta – formerly known as Facebook – to sell Giphy, the American search engine that allows users search for and share short looping videos which are without sound, that are similar to animated GIF files.
The CMA stated that the merger deal could possibly be harmful to social media users and advertisers in the UK. It also found that the deal would further boost Meta’s already strong market power, as it would limit other platforms’ ability to use Giphy GIFs, which will, in turn, drive more traffic to sites owned by Facebook (WhatsApp, Instagram and Facebook).
According to the CMA, Meta’s sites dominated social media usage time up to around 73 percent, and could eventually outperform social media rivals like TikTok, Twitter and Snapchat by leveraging Giphy. The Authority then added that before the merger, Giphy had launched ”innovative advertising services” which brands like Dunkin’ Donuts and Pepsi which it could possibly have brought to the United Kingdom.
The CMA also stated that at the time the merger was made, Giphy’s advertising services were terminated by Facebook. That move removed a vital part of potential opposition in the market. The CMA was concerned by this move, calling it particularly concerning considering that Facebook is in control of about half of the £7 billion display advertising market in the UK.
Facebook had acquired Giphy for a reported fee of $400 million, with an aim of integrating the service into Instagram. After a month, the CMA started an investigation into the merger and decided in August that Facebook could hinder social media rivals such as TikTok and Snapchat from tapping into Giphy’s GIFs.
Meta had initially stated that the CMA did not have jurisdiction because Giphy was not operational in the United Kingdom, adding later that Giphy’s paid services were not display advertising by the definition of the CMA.
In October, Meta was fined $70 million by the CMA for breaking some rules related to the deal by failing to report necessary information and changing its chief compliance officer on two different occasions without receiving permission.
Seplat Energy to Acquire ExxonMobil’s Nigerian Shallow Water Business
Seplat Energy Plc, Nigeria’s leading indigenous energy company, has confirmed that it is in the process of acquiring ExxonMobil’s Nigerian shallow water business.
ExxonMobil has been selling off its businesses in Europe, Africa, and Asia in recent years to focus on a few mega-projects at home and abroad.
The statement reads, “Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, notes the recent press speculation and confirms that Seplat Energy, together with a partner, is in competitive discussions to acquire ExxonMobil’s Nigerian shallow water business.”
According to Seplat, there is no certainty as to the outcome of the ongoing discussions.
“Deliberations are ongoing and accordingly, there can be no certainty as to the outcome. A further announcement will be made as and when appropriate, in line with regulatory requirements,” Seplat stated.
The announcement is coming a few days after Seplat Chairman, ABC Orjiako resigned from his position as the Chairman of the company following a debt scandal with Zenith Bank Plc.
Flour Mills of Nigeria Acquires First Bank of Nigeria Limited’s 5.06 Percent Stake in Honeywell Flour Mills
Flour Mills of Nigeria Plc, Nigeria’s leading flour mill company, has acquired First Bank of Nigeria Limited’s 5.06 percent stake in Honeywell Flour Mills Plc.
The company disclosed in a statement signed by Umolu, Joseph A.O., Company Secretary/Director, Legal Services.
The acquisition was in addition to the 71.6 percent stake of Honeywell Flour Mills Plc (HFMP) FMN acquired on the same day. Therefore, Flour Mills of Nigeria Plc will now hold 76.75 percent equity interest in HFMP.
According to the company, the move will help build a resilient flour mills company that will ensure job continuity, deepen productivity and support national growth.
Commenting on the transaction, Omoboyede Olusanya, Group Managing Director of FMN, said “The proposed transaction is part of our global growth strategy, which is aligned with our vision to not only be an industry leader, but also a national champion for Nigeria in the Food and Agro-allied industries.”
“Given FMN’s parallel negotiations for both stakes culminating in the agreements being signed on the same date, the basis for arriving at key commercial terms including final equity price per share, will be the same. The price payable to FirstBank will be the same with Honeywell Group Limited.”F
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