Wiz founder Assaf Rappaport expands media ambitions with $27 million Israel Entertainment deal
The digital media group, which operates some of Israel’s largest Instagram and TikTok channels with more than 4 million followers, will continue operating independently under founders David and Shlomo Sa’ar. The deal comes after Rappaport’s group agreed to acquire control of Reshet 13.
The high-tech investment group led by Wiz co-founder and CEO Assaf Rappaport is acquiring control of the digital media company Israel Entertainment at a valuation of NIS 80 million ($26M). The transaction values Israel Entertainment above the price at which the group agreed to acquire Reshet 13 about three months ago.
Israel Entertainment operates a network of popular Instagram and TikTok channels with more than 4 million followers, making it the largest independent digital media group in Israel. The company was built entirely through self-financing by brothers David and Shlomo Sa’ar, who founded and continue to manage the business.
The acquisition is being carried out through the Merit Fund, the investment vehicle that was also used for the Reshet 13 transaction. However, there are currently no plans to merge the two companies. Israel Entertainment will continue operating as an independent company, with the Sa’ar brothers remaining in charge.
Under the agreement, Merit will acquire 60% of Israel Entertainment for NIS 48 million, with an option to purchase an additional 25% stake. The deal was advised by attorneys Noa Nudelman and Eran Shimoni of Shimoni Gross.
Israel Entertainment’s portfolio includes the Instagram and TikTok channels Israel Entertainment, Israel Music, Israel Sport, Israel Business, Israel Office, Israel Shorts, and Israel Cooking.
Its flagship channel, Israel Entertainment, has 1.7 million followers on Instagram, generating an average of approximately 500,000 story views, 1.5 million views per reel, and 90,000 likes per post.
On TikTok, the channel has 1.1 million followers, with an average of around 500,000 views per video and 146 million total likes on the account.
“The acquisition of Israel Entertainment reflects our deep belief in the enormous potential of digital media and its ability to shape and diversify public discourse in Israel,” Merit said in a statement. “David and Shlomo Sa’ar have demonstrated exceptional entrepreneurial ability and built a platform that reaches millions of Israelis every day. We are proud to become partners on this journey and provide the group with the resources and backing needed for continued growth.”
The Sa’ar brothers said: “We never built Israel Entertainment with the goal of selling it. We built it to create the leading digital media company in Israel. The partnership with Merit does not change our vision, it gives us the tools to realize it on a much larger scale.”
They added: “We are proud of the journey we have taken, grateful to our team and audience who believed in us, and excited for the next chapter.”
