Founders Asaf Rappaport and Yinon Kostika Solely Finance Channel 13 Acquisition After Other Investors Withdraw

The funding for the acquisition of Channel 13 will come exclusively from Waze founders Asaf Rappaport and Yinon Kostika, after other investors initially involved in financing the deal decided not to participate. In March, a group of tech entrepreneurs led by Rappaport agreed to purchase control of Channel 13, with the acquisition structured through Merit, a public benefit company that would hold the channel's shares and control. Initially, alongside Rappaport and Kostika, other tech entrepreneurs from companies like Wix, Monday.com, and Riskified were expected to co-finance the deal. However, these additional investors never transferred funds to Merit, engaging only in preliminary discussions that did not materialize into financial contributions.

As a result, the $120 million capital injection committed over three years will be provided solely by Rappaport and Kostika. The Second Authority Council is currently reviewing the transaction approval request and has asked for details on who transferred funds to Merit for the purchase. Merit confirmed to the regulator that only Rappaport and Kostika have provided money for the acquisition, while funds from other parties are allocated for different purposes and will not be used for the purchase.

This review occurs amid a controversial government decision in July refusing to recognize any actions or approvals by the Second Authority Council unless it meets specific legal criteria. This decision followed a June Supreme Court ruling that reinstated the previous government's council despite its membership falling below the legal minimum. There are concerns this government stance could provoke a constitutional crisis, particularly regarding the approval of Channel 13's sale.