Telecom tycoon said aiming to buy Yedioth Ahronoth

Telecom tycoon said aiming to buy Yedioth Ahronoth

Patrick Drahi, who already owns local cable operator, reportedly moving for controlling share in top-selling daily

Stuart Winer is a breaking news editor at The Times of Israel.

Patrick Drahi (Photo credit: Roni Schutzewr / Flash90)
Patrick Drahi (Photo credit: Roni Schutzewr / Flash90)

French-Israeli telecommunications tycoon Patrick Drahi is in talks to buy a controlling share of the Yedioth Ahronoth publishing group, producer of Israel’s best-selling daily newspaper.

The deal, said to be in an advanced stage, would see Drahi purchase a 34% stake in the Yedioth group, currently held by Eliezer Fishman, who earlier this year was declared bankrupt with a debt of NIS 1.5 billion ($425 million), the largest bankruptcy in Israeli history.

Drahi, who already controls the Netherlands-based Altrice company, also aims to snap up additional shares from members of the Mozes family, notably the 24% of shares in the company that are held by Arnon Mozes, Haaretz reported on Monday.

Mozes’s control of Yedioth is at the center of a corruption investigation into Prime Minister Benjamin Netanyahu, dubbed Case 2000, in which the premier allegedly negotiated a quid pro quo deal with Mozes that would have seen the paper give more favorable coverage in return for Netanyahu pushing legislation to hamper its main rival, the free-handout Israel Hayom.

A change in hands for Yedioth would be a milestone in Israeli publishing, as the company has been controlled by the Mozes family since the late 1930s.

Case 2000 rests on taped recordings of meetings between Netanyahu and Mozes in which the prime minister also offered to help find a purchaser for Yedioth. Among the names reportedly discussed were Larry Ellison and Australian billionaire James Packer.

A key former aide to Netanyahu, Ari Harow, has turned state’s witness and reportedly given evidence relating to the investigation as well as another corruption investigation into the prime minister. It was reportedly Harrow who, following instructions from Netanyahu, taped the meetings with Mozes. The recordings were later found by police as they raided Harow’s home as part of a separate investigation into the allegedly fraudulent sale of a company he owned.

Publisher and owner of Yedioth Aharonoth newspaper Arnon "Noni" Mozes arrives for questioning in the so-called 'Case 2000' police investigation at the Lahav 433 investigation unit, in Lod, January 17, 2017. (Roy Alima/Flash90)
Publisher and owner of Yedioth Ahronoth newspaper Arnon “Noni” Mozes arrives for questioning in the so-called ‘Case 2000’ police investigation at the Lahav 433 investigation unit, in Lod, January 17, 2017. (Roy Alima/Flash90)

Fishman’s shares were purchased 20 years ago with a NIS 1.1 billion ($278 million) loan from Bank Hapoalim, which now wants to sell the stock. At the time, Yedioth was valued at some $800 million but falling printed media advertising revenues have seen its worth drop over the past two decades.

Mozes reportedly held talks with another buyer over the past year but those negotiations fell through because the purchaser felt Mozes’s NIS 1 billion estimate for his shares was too high.

Altice’s portfolio ranges from French cable and mobile operator Numericable-SFR to the French daily Liberation and the L’Express weekly news magazine, as well as the Israeli TV station i24 News and the Israeli cable television operator Hot.

Under current Israeli law, Drahi is said to be barred from having control over both the cable concern and the publishing house, but could go ahead with the first part of the purchase.

Join us!
A message from the Editor of Times of Israel
David Horovitz

The Times of Israel covers one of the most complicated, and contentious, parts of the world. Determined to keep readers fully informed and enable them to form and flesh out their own opinions, The Times of Israel has gradually established itself as the leading source of independent and fair-minded journalism on Israel, the region and the Jewish world.

We've achieved this by investing ever-greater resources in our journalism while keeping all of the content on our site free.

Unlike many other news sites, we have not put up a paywall. But we would like to invite readers who can afford to do so, and for whom The Times of Israel has become important, to help support our journalism by joining The Times of Israel Community. Join now and for as little as $6 a month you can both help ensure our ongoing investment in quality journalism, and enjoy special status and benefits as a Times of Israel Community member.

Become a member of The Times of Israel Community
read more: