Tech group led by Wiz CEO acquires Channel 13 after deal with Netanyahu ally falls through

Billionaire Len Blavatnik’s Access Industries signs a memorandum of understanding to sell control in the Israeli TV station Channel 13 to the Merit Spread Foundation, backed by a group of tech entrepreneurs, led by Wiz co-founder Assaf Rappaport.

The agreement comes after Blavatnik previously accepted an offer for the TV station by a group of investors led by telecom businessman Patrick Drahi, who is widely considered to be a supporter of Prime Minister Benjamin Netanyahu. That initial deal sparked alarm among government critics who saw it as an extension of the state’s efforts to expand its control of the media.

“Merit Foundation’s acquisition of Reshet 13 secures the channel’s future and its absolute editorial independence,” the group of tech entrepreneurs says. “By backing Merit, we are making resources and energy available that have never before been seen in an Israeli television channel, with the aim of leading digital innovation and establishing a unifying, Zionist and Israeli consensus.”

“The citizens of Israel deserve an independent, patriotic, and strong news channel,” the tech group says.

Channel 13 has been fighting for survival for a number of years, with past claims that journalists were fired for voicing criticism of Netanyahu and the government. Rappaport and other tech founders in the group have previously publicly criticized the government, particularly over the contentious judicial overhaul.

Upon completion of the transaction, Merit will become the majority shareholder of Channel 13. Access Industries and WBD will remain shareholders in the TV station.

Financial details of the agreement were not made public. According to reports in the Hebrew press, the Merit Foundation plans to invest about $120 million in the ailing Israeli TV station.