Startup Lagos

04-Nov-2023

Industry Insights

Iroko TV: A Takeover, Not a Shutdown – Investors Make Their Move 6 months ago

Amidst the swirling rumors of Iroko TV's impending shutdown, the true story behind the scenes paints a picture far from the grim forecasts. Iroko TV, a prominent African streaming platform, underwent a discreet acquisition in 2019 by the French television giant Canal+, a subsidiary of Vivendi SA. However, beneath this acquisition lies a compelling narrative of power struggles, corporate intrigue, and mismanagement.

Upon the acquisition, the new majority owners of Iroko TV permitted the company's founders to retain their executive roles. Much to everyone's surprise, the entrepreneurial couple embarked on an extravagant globetrotting adventure, with the company shouldering the cost of their luxurious travels. This extravagant behavior took a toll on the company's employees, who grappled with the financial strain and the deteriorating work conditions.

Fast forward to the present year, Canal+ returned to investigate the situation, this time covertly, taking on the roles of mystery shoppers. Their mission: to unveil the operational inefficiencies within the company. As they entered Iroko TV's premises, they faced exasperating delays at the reception while awaiting an opportunity to discuss potential partnerships with the elusive CEO, Jason Njoku. It became evident that Njoku was frequently absent, even during regular working hours.

The pivotal moment arrived when the CEO finally made his appearance, and the undercover visitors disclosed their true identities. In a surprising turn of events, they decided to shut down Iroko TV, leaving the dedicated staff members facing job terminations, with guaranteed payments only until the end of December.

Yet, the story doesn't conclude there. The mystery shoppers, who had arrived in an unassuming Peugeot saloon car, were taken aback by the sight of the CEO arriving in a heavily-guarded SUV. This striking contrast in transportation exposed a reckless misuse of funds. Additionally, during their time at the company's premises, the investors observed a multitude of disparities in the company's operations, further confirming their decision to shut down the platform.

This revelation dispels the notion that Iroko TV is merely shifting its focus; instead, Canal+ is taking over the company's assets. It remains uncertain whether the entrepreneur behind Iroko TV will embark on a new venture. This unfolding narrative raises crucial questions about the state of the African business landscape. It's a disheartening story of missed opportunities, mismanagement, and a pattern of entrepreneurs and investors exploiting funds for personal gain rather than contributing to the growth of their communities.

This story reflects a broader trend in the African startup ecosystem, where genuine entrepreneurs face challenges in finding opportunities, while investors view their funds as a fast track to personal wealth, perpetuating a cycle of poverty rather than alleviating it. It's time for change—a call for the older generation (OGs) to address and rectify the issues that the new generation of entrepreneurs is grappling with.

The Iroko TV saga serves as a stark reminder that there is much work to be done in reshaping the African business landscape. Genuine opportunities should thrive, and investors should be held accountable for their contributions. It's time to "fix up" and create an environment where success is based on merit and innovation, rather than exploitation and mismanagement.

The investors may have been tipped off about the irregularities in reports, which led them to employ the mystery shopping approach. Evidently, these suspicions have been lingering, and the investors sought tangible evidence to confirm their concerns.

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