Asaf Rappaport and Yinon Kostika Solely Fund Channel 13 Purchase After Other Investors Withdraw

The financing for the acquisition of Israel's Channel 13 will come exclusively from Waze founders Asaf Rappaport and Yinon Kostika, after other investors initially involved in talks decided not to participate. Earlier this year, a group of tech entrepreneurs led by Rappaport agreed to purchase control of Channel 13 through Merit, a public benefit company that will hold the channel's shares. Initially, other prominent tech figures from companies like Wix, Monday.com, and Riskified were expected to co-finance the deal. However, these investors never transferred funds to Merit, and discussions with them remained theoretical without actual capital contributions.

As a result, the $120 million funding commitment over three years will be covered solely by Rappaport and Kostika. Currently, the Second Authority Council is reviewing Channel 13's request to approve the transaction and has requested details on the sources of funds transferred to Merit. Merit confirmed to the regulator that only Rappaport and Kostika have provided money for the purchase, while funds from other parties are allocated for different purposes.

This review is taking place amid a government decision in July that refuses to recognize any actions or approvals by the Second Authority Council unless it meets specific legal criteria. This move followed a Supreme Court ruling in June that reinstated the council despite its membership falling below the legal minimum. The government's stance raises concerns about a potential constitutional crisis, especially regarding the approval of Channel 13's sale.