Regulatory Approval Clears Merit Fund’s Takeover of Reshet 13

The Second Authority Council gave final approval for the transfer of control of Israeli broadcaster Reshet 13 to the public-benefit company Merit Fund. The council’s review covered the transaction’s ownership structure, funding sources, the purchasers’ commitments, and safeguards for the channel’s independence. Oversight requirements were imposed, including disclosure of donors and expanded decision-making within Merit.

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Reshet 13’s ownership has been contested for years. Earlier in the year, a proposed acquisition by telecom magnate Patrick Drahi—who owns HOT and i24News—was blocked over cross-ownership concerns. The Merit Fund deal emerged as an alternative, structured so that the company, rather than individual investors, holds the shares and control. Financiers Assaf Rappaport and Yinon Costica are providing the capital and have pledged to inject $120 million into the broadcaster over the next three years.

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• Financing: Rappaport and Costica are the sole financiers of the acquisition.

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• Investment pledge: $120 million to be deployed over three years for local content, a financial buffer, and digital development.

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• Governance: Merit will expand its decision-making circle and provide guarantees covering the completion of these investments.

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• “Approval of the transaction was granted following a comprehensive and in-depth review of all aspects of the acquisition, the purchasers' commitment to ensuring the continued proper operation of Reshet 13, and the establishment of oversight and transparency mechanisms,” — Council Chairman Mordechai Mordechai

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• “The Second Authority's approval of the transfer of the control permit is a historic milestone for Reshet 13, signaling a transition from a period of struggle to one of momentum and growth,” — Idan Elrom, CEO

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