Assaf Rappaport loses investors: The drama on the way to acquiring Reshet 13
Despite reports of a number of high-tech entrepreneurs joining the channel acquisition process, the official request submitted to the Second Authority indicates at this stage only 2 financiers: Rappaport and Yinon Costica. At the same time, the regulator is nearing a decision on the deal and is also examining the channel's past obligations.
The acquisition of Reshet 13 by a group of high-tech figures led by Assaf Rappaport and Yinon Costica is expected to be carried out at this stage solely by the funding of these two. Other entrepreneurs from companies such as Wix, Monday, and Riskified previously held talks to participate in the move, but did not transfer funds to the Merit fund for the purpose of purchasing the channel.
The deal is being carried out through the Merit fund, a public benefit company that is supposed to hold control over Reshet 13. As part of the outline, the financiers committed to injecting 120 million dollars over 3 years. According to the information provided to the Second Authority, so far only Rappaport and Costica have transferred funds to the fund intended for the purchase.
The issue was also raised in discussions held by the Second Authority ahead of a decision on the ownership transfer request. The Authority requested to receive information on the identity of the investors and the funds transferred to the fund, and it was clarified that any additional investor who joins in the future will be required to report and obtain approval.
At the same time, the Authority is examining the past debts of Reshet 13, including obligations for investment in Israeli content. According to the data provided, in the years 2022–2023, the channel accumulated debts of tens of millions of shekels in this area, and estimates speak of about 100 million shekels in total.
These days, preparations are also continuing at the network for the change of ownership, following the appointment of Idan Elrum as interim CEO and the staffing of other management positions. The final decision regarding the transfer of control will be made after the completion of the Second Authority's review.
As recalled, the government opposes the convening of the previous Second Authority council and views it as illegal. The government announced that all decisions of the previous Authority will be retroactively canceled.
