Israeli Regulator Approves Sale of Channel 13 to Tech Entrepreneurs

Israel's Second Authority for Television and Radio Council has approved the acquisition of control over Channel 13 by Merit Partners, a fund financed by Wiz founders Asaf Rappaport and Yinon Costica. This approval finalizes the transfer of ownership from Len Blavatnik to the fund.

The deal, initially signed in March, commits Merit Partners to injecting approximately $120 million into Channel 13 over three years. While initially conceived with a broader group of high-tech entrepreneurs, Rappaport and Costica emerged as the primary financiers, with the acquisition proceeding through the Merit Partners fund.

The regulatory body's decision followed extensive discussions and a thorough review of the ownership structure, funding sources, and the buyers' commitments to ensure Channel 13's continued stable operation. The approval includes mechanisms designed to prevent undue influence from donors on the channel's operations, content, and decision-making processes.

Specific conditions were set regarding transparency of funding sources and donor identities, along with rules for future investors seeking to influence the channel. The Authority also mandated measures to bolster Channel 13's independence by broadening the decision-making circle within Merit Partners.

Financial guarantees were also required from the buyers. Rappaport and Costica pledged to provide collateral for investments in Israeli productions and to maintain a financial cushion ensuring Merit Partners' stability as the controlling shareholder. Council Chairman Mordechai Mordechai stated the approval followed a comprehensive examination, prioritizing the public interest and the broadcaster's independence.