Billionaire Len Blavatnik’s Access Industries signed a memorandum of understanding on Friday to sell control in Channel 13 to a foundation backed by a group of tech entrepreneurs, led by Wiz co-founder Assaf Rappaport.
The agreement came after Blavatnik previously accepted an offer for the TV station by a group of investors led by telecom businessman Patrick Drahi, who is widely considered to be a supporter of Prime Minister Benjamin Netanyahu.
That initial deal sparked alarm among government critics who saw it as an extension of the state’s efforts to expand its control of the media.
“Merit Foundation’s acquisition of Reshet 13 secures the channel’s future and its absolute editorial independence,” the group of tech entrepreneurs said. “By backing Merit, we are making resources and energy available that have never before been seen in an Israeli television channel, with the aim of leading digital innovation and establishing a unifying, Zionist and Israeli consensus.”
“The citizens of Israel deserve an independent, patriotic, and strong news channel,” the tech group said.
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The announcement came two days after multiple anti-trust regulators cleared the acquisition of Wiz by Alphabet’s Google for a staggering $32 billion, the largest-ever purchase of an Israeli-founded tech company.
Wiz co-founder and CEO Assaf Rappaport. (Courtesy)
Channel 13 has been fighting for survival for a number of years, with past claims that journalists were fired for voicing criticism of Netanyahu and the government.
Explainer: Channel 13’s looming sale ignites fears of political meddling and regulatory evasion
Rappaport and other tech founders in the group have previously publicly criticized the government, particularly over the contentious judicial overhaul.
Upon completion of the transaction, Merit will become the majority shareholder of Channel 13.
Access Industries and WBD will remain shareholders in the TV station.
French telecom and media group Altice president Patrick Drahi arrives for a hearing before a parliamentary commission on media concentration at the French Senate in Paris on February 2, 2022. (STEPHANE DE SAKUTIN / AFP)
Financial details of the agreement were not made public, however according to Hebrew-language reports, the Merit Foundation plans to invest about $120 million in the ailing Israeli TV station.
Financial data obtained by The Marker showed that Channel 13 burned through NIS 340 million (approximately $110 million) between 2022 and 2025. Without a dramatic turnaround, the channel is projected to lose another NIS 250 million ($80 million) by 2027.
However, according to the business daily, sources close to the negotiations suggested that the decision to initially accept Drahi’s offer had been driven not by business metrics but by regulatory and political pressure.
Messages were reportedly conveyed to Blavatnik suggesting that a sale to the tech group would face bureaucratic delays orchestrated by the government, whereas a transfer of shares to Drahi — who also owns the HOT cable network and the i24NEWS channel — would be fast-tracked.
In addition to concerns over journalistic independence, unions had been bracing for a large wave of layoffs if the Drahi offer had gone through.
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