Assaf Rappaport and his three Wiz co-founders, who secured a record-breaking exit with the cybersecurity company, are on track to acquire the franchise to operate McDonald’s in Israel. Calcalist has learned that negotiations between McDonald’s Corporation and a group led by Rappaport and his fellow Wiz co-founders, Yinon Costica, Ami Luttwak and Roy Reznik, are in their final stages, with the parties nearing an agreement.
Several groups competed for the franchise, but the group led by the Wiz founders now appears to be the frontrunner. Although Rappaport’s representatives previously denied reports of his potential entry into the McDonald’s business, recent progress in the negotiations has brought the parties closer to a deal. The transaction has not yet been finalized.
If completed, the deal would bring the four founders of Wiz, which Google agreed to acquire for $32 billion in the largest acquisition of an Israeli tech company, into one of Israel’s major fast-food businesses. Each founder was estimated to be in line for approximately $3 billion before taxes from the acquisition.
In 2024, McDonald’s Corporation acquired its Israeli operations from Omri Padan, who had held the franchise for more than three decades. At the time, the chain had 225 branches and approximately 5,000 employees. Padan brought McDonald’s to Israel, opening its first branch at Ayalon Mall in 1993.
McDonald’s Global took over the Israeli business amid an international boycott of the chain following the war in Gaza and the Israeli franchisee’s provision of benefits to IDF soldiers. After the acquisition, McDonald’s began operating the chain directly and exploring the possibility of transferring the business to a new franchisee.
For Rappaport and his partners, the potential deal would mark a further expansion of their investment activities beyond the technology sector. In September, Calcalist reported that McDonald’s was among the investment opportunities presented to the Wiz founders. Following their exit, the four established a joint investment firm managed by Yotav Costica, Yinon Costica’s brother.
Beyond their technology investments, Rappaport and Costica have also been involved in media. Through the Merit fund, they led the acquisition of a controlling stake in Reshet 13, committing to inject $120 million into the television channel over three years. The fund also acquired a 60% stake in the digital media group Israel Bidur for NIS 48 million.
If the McDonald’s deal goes ahead, the Wiz founders will extend their business activities into the restaurant sector, taking on one of the world’s most recognizable consumer brands.