Fresh from $32 billion exit, Wiz founders turn to Israeli media with $125 million bet on TV broadcaster
An investor group led by Wiz founders, and including Riskified founder Ido Gal and Wix president Nir Zohar, plans to acquire control of Reshet 13 from Len Blavatnik and inject fresh funding through the Merit Spread Foundation.
The deal by a group of high-tech entrepreneurs to acquire broadcaster Reshet 13 includes both the purchase of shares from Len Blavatnik and a significant capital injection intended to stabilize and rebuild the broadcaster.
Under the plan, the investor group will purchase shares from Blavatnik worth $20-25 million and commit to injecting up to $125 million into the broadcaster over the next three years. Beginning in the third year, the buyers expect the channel to reach operating profitability.
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Assaf Rappaport alongside Reshet 13 offices.
(Photos: Vered Barequet / Shutterstock, Omer Hacohen)
On Friday it was reported that the group had reached an agreement to acquire control of Reshet 13 from Blavatnik’s Access Industries. The deal will be carried out through the Merit Spread Foundation, which will receive donations from prominent technology entrepreneurs who will finance the acquisition.
The move is being led by the founders of Wiz, Assaf Rappaport, Yinon Costica, Ami Luttwak and Roy Reznik, who last week completed a $32 billion exit to Google. Other participants include Riskified founder Ido Gal, Wix president Nir Zohar, businessman Kobi Richter, and Amit Stibbe, the son of businessman and astronaut Eytan Stibbe, along with additional donors.
The transaction is expected to include an immediate cash payment of $20-25 million to Blavatnik in exchange for most of his shares in the channel. The payment could potentially be transferred as early as this week.
Beyond the share purchase, the group plans to inject $45 million into the channel over the next 12 months, followed by an additional $60-80 million over the subsequent 24 months.
The investors believe that this capital will allow the channel to stabilize financially and eventually move into operating profit, after which additional funding from owners would be reduced to a minimum.
Depending on regulatory approval, the initial flow of funds could begin as early as this week, even before the deal receives final authorization.
The final scope of the transaction will depend on a due diligence review that begins this week. Until now, the investors have not yet been exposed to the channel’s financial documents and operational data.
The review is expected to be largely formal. According to people involved in the process, the findings are not expected to lead to a withdrawal from the deal, even in the event of significant issues such as a large budget gap.
In the coming days, and no later than the end of the week, the group is expected to submit a formal application to the Second Authority for Television and Radio seeking approval of the acquisition. An application to the Competition Authority will be filed afterward.
The deal is expected to receive approval relatively quickly. The absence of apparent conflicts of interest, competition concerns, or financial stability issues could allow the transaction to be approved in principle within about a week.
Legal opinions obtained by the Merit Foundation state that there is no barrier to it serving as the controlling shareholder of Reshet 13. However, external factors, including the war with Iran or political disruptions, could potentially delay the regulatory process.
Once the deal is approved, the Merit Foundation is expected to hold 75% of Channel 13’s shares, while Access Industries and Warner Bros. Discovery will retain the remaining 25%.
Merit will have the authority to appoint the company’s board of directors. However, the expectation is that the board will be selected through consultation with the investors, particularly the Wiz founders, who together contributed about 1 billion shekels to the foundation.
Despite their financial involvement, the investors themselves, or their associates — are not expected to serve on the board.
Instead, the plan is to appoint directors with extensive experience in television, news, and content production, alongside board members with backgrounds in technology, in an effort to accelerate the digital transformation of the network.
