Israeli Regulator Approves Sale of Channel 13 to Merit Fund

The Second Authority for Television and Radio Council, led by Chairman Mordechai Mordechai, has approved the acquisition of Israel's Channel 13 by the Merit Fund. The approval follows extensive deliberations and a thorough review of all aspects of the deal by the Authority's acting director, Uri Sheraf, and his professional team. The review encompassed ownership structure, funding sources, buyer commitments, and the ability to ensure Channel 13's continued proper operation, while safeguarding public interest and the broadcaster's independence.

As a condition for approval, the Authority secured commitments for oversight, control, and transparency mechanisms to prevent undue influence on Channel 13's operations, content, or decision-making processes. These include transparency regarding funding sources and donors, conditions for future investors seeking to influence the channel, and measures to bolster its independence by broadening decision-makers within Merit. The Authority also ensured Channel 13's financial stability, with the buyers pledging collateral for investments in Israeli productions and maintaining a significant financial cushion for the Merit Fund as the controlling shareholder.

"The approval of the deal was reached after a comprehensive and in-depth examination of all aspects of the acquisition, the buyers' commitment to ensuring Channel 13's continued proper operation, and the assurance of oversight and transparency mechanisms," stated Mordechai Mordechai. "The Council's primary consideration was the public interest alongside preserving the broadcaster's independence."

It is noteworthy that the approving council was the previous one, headed by Mordechai Mordechai, which was replaced by government decision. However, a High Court ruling reinstated the former council members, raising questions about whether the current government will approve the change in control.