Wiz Founders Near Deal to Acquire McDonald's Israel Franchise

By Вести-Калькалист

Translated & summarized from Vesty by baba

CommunityNeutral tone

Russian · 9 newsrooms covering

Plus

Four founders of the Israeli cybersecurity company Wiz, which sold to Google for $32 billion, are nearing a deal to acquire the McDonald's franchise in Israel. The negotiations are in their final stages, with an agreement expected soon. McDonald's Corporation repurchased the Israeli business in 2024 and is now seeking a new franchisee to operate its 235 restaurants. This move marks an expansion for the Wiz founders into the fast-food industry, complementing their existing investments in media and technology.

The story in 5 lines · by baba

Wiz co-founders Asaf Rapoport, Inon Kostika, Ami Lutvak, and Roi Reznik are close to acquiring the McDonald's Israel franchise.
The four entrepreneurs previously sold their cybersecurity company Wiz to Google for $32 billion.
McDonald's Corporation bought back the Israeli franchise in 2024 and is seeking a new operator.
The deal is valued at $200-300 million for the franchise rights of McDonald's 235 Israeli restaurants.
The founders also have investments in media, including the "Reshet-13" TV channel.

Four co-founders of the Israeli cybersecurity firm Wiz, which was acquired by Google, are reportedly close to finalizing a deal to acquire the franchise rights for McDonald's in Israel. Negotiations are in their final stages, with an agreement anticipated soon, according to Calcalist on October 15. The group includes Asaf Rapoport and his three Wiz co-founders, Inon Kostika, Ami Lutvak, and Roi Reznik. Wiz, founded in 2020, specializes in identifying vulnerabilities in cloud systems. The company was sold to Google in March 2026 for a record $32 billion for an Israeli tech company, with each founder reportedly receiving around $3 billion before taxes.

While representatives for Rapoport previously denied his involvement in a McDonald's deal, recent progress in talks has positioned the Wiz founders as leading contenders. This potential acquisition represents an opportunity for the entrepreneurs to enter one of Israel's largest fast-food businesses. McDonald's operates 235 restaurants in Israel, with an estimated annual turnover of 1.7 billion shekels. The franchise value has recently been assessed at $200-300 million.

In 2024, McDonald's Corporation bought back the Israeli business from Omri Padan, who had held the franchise for over three decades and opened the first restaurant in 1993. The repurchase occurred amid boycotts of McDonald's in several countries due to the Gaza war and the chain's provision of discounts to IDF soldiers. Following the acquisition, the corporation managed the restaurants directly and began seeking a new franchisee.

For Rapoport and his partners, this venture signifies an expansion of their investments beyond the tech sector. After selling Wiz, they established a joint investment company managed by Yotav Kostika, Inon Kostika's brother. Their investments include a controlling stake in the "Reshet-13" television channel, with a commitment of $120 million over three years, and a 60% acquisition of the digital media group "Israel Bidur" for 48 million shekels.

A franchise agreement grants the operator the right to use a well-known brand and its established operational system. The local operator manages restaurants, hires staff, and invests in development, adhering to corporate standards for food and service, while paying royalties to McDonald's. The entrepreneur assumes the business's costs and risks.