Controversy Surrounds Sale of Channel 13 to Patrick Drahi

Len Blavatnik, the controlling shareholder of Channel 13, has decided to sell his shares in the channel to cable tycoon Patrick Drahi, despite a higher offer from a consortium of Israeli tech entrepreneurs. This decision has ignited fears of political meddling and regulatory evasion, particularly given allegations of pressure from Prime Minister Benjamin Netanyahu's circle. The Union of Journalists in Israel has already petitioned the attorney general and the competition commissioner to block the sale, arguing that the proposed ownership structure is a “fiction” designed to bypass broadcasting laws.

Times of Israel

The sale faces significant legal hurdles due to Israel’s cross-ownership law, which prohibits the owner of cable infrastructure, like Drahi’s HOT, from holding more than 15% of a broadcast news channel. To navigate this, the deal is structured so that Drahi will initially hold no more than 15% of the shares, with Channel 13’s CEO, Emiliano Calemzuk, acting as the nominal owner. Critics argue that this arrangement is a loophole, allowing Drahi to exert control while appearing to comply with regulations. The Union of Journalists has warned that any premature funding could violate competition laws, potentially leading to criminal proceedings.

Times of Israel

The political implications of the sale are significant. Blavatnik previously indicated that Netanyahu had encouraged him to acquire Channel 10, framing it as a “national mission.” Communications Minister Shlomo Karhi has been actively promoting legislation to abolish the cross-ownership ban, which would enable Drahi to own Channel 13 outright. Critics express concern that Drahi’s i24NEWS, which has been increasingly aligned with the government’s narrative, could merge with Channel 13’s news division, undermining its editorial independence.

Times of Israel

Employees at Channel 13 are apprehensive about the potential impact of Drahi's takeover, fearing it could lead to significant layoffs and a loss of journalistic integrity. The Union of Journalists has declared a work dispute and is preparing for a strike, demanding that the board halt the “illegal” transaction. They have explicitly rejected the notion of mass layoffs, asserting that such measures have never been part of negotiations.

Times of Israel

Drahi's financial situation complicates the sale, as he is reportedly facing debts in the billions of euros and has been liquidating assets globally. The Union of Journalists has raised concerns that allowing a financially distressed tycoon to acquire a major public broadcast asset could be detrimental to the channel's future. They suggest that Drahi might be seeking to use ownership of Channel 13 for political leverage or as a means of securing immunity in Israel.

Times of Israel

Despite the controversy, Channel 13 CEO Calemzuk has defended the sale, describing Drahi as a “strong strategic investor” who could enhance the channel’s financial stability. However, with the union threatening legal action and regulators under pressure to intervene, the future of Channel 13 remains uncertain. The unfolding situation is poised to become a pivotal moment in the intersection of media, politics, and finance in Israel.

Times of Israel

• “Even if Mr. Calemzuk… is presented to the regulators as holding the majority of the means of control… it is understood that one who does not inject funds into the deal… cannot be a true controlling owner,” — Amir Basha, Attorney for the Union of Journalists

Times of Israel

• “We believe that it is now correct to wait until the picture clarifies regarding the identity of the owners… and their intentions regarding the news company, its journalistic independence, and the occupational future of its employees,” — Channel 13 Workers Committee

Times of Israel

• “Mass layoffs in News 13 of the type mentioned in the media… have never been on the negotiating table and we oppose them strongly.” — Union of Journalists Statement

Times of Israel

• “There is a concern that Mr. Drahi… may be fleeing assets abroad,” — Union of Journalists Letter to Regulators

Times of Israel

• “Despite the uproar, Channel 13 CEO Calemzuk defended the move in a message to employees, calling Drahi a “strong strategic investor” who would strengthen the channel’s financial stability.” — Emiliano Calemzuk, CEO of Channel 13

Times of Israel