Israel’s Channel 13: Billionaire Battle for Independent News Outlet

The future of independent news in Israel hangs in the balance as UK billionaire Leonard Blavatnik prepares to sell a nearly 15% stake in Channel 13, a commercial television channel known for its critical coverage of Prime Minister Benjamin Netanyahu. The sale to French-Israeli media magnate Patrick Drahi has sparked fears among Israeli journalists that the channel’s editorial independence will be compromised, potentially furthering a trend towards media consolidation aligned with the Netanyahu government’s interests.

Channel 13 has distinguished itself in Israel’s media landscape through its investigative journalism, particularly the work of reporters like Raviv Drucker, whose reporting has frequently targeted Netanyahu and his allies. This critical stance has made the channel a frequent target of attacks, even experiencing vandalism at its offices last November. The channel’s willingness to pursue challenging investigations, however, has also made it a target for acquisition.

A group of approximately 20 Israeli tech entrepreneurs, led by billionaire Assaf Rappaport, attempted to prevent the sale to Drahi, viewing Channel 13 as a vital pillar of independent media. They proposed a $120 million investment over three years for a 74% stake, framing their offer as an “impact investment” designed to safeguard the channel’s independence. Rappaport, who has publicly opposed Netanyahu’s judicial overhaul plans, reportedly engaged in multiple discussions with Blavatnik, including meetings in New York and St Bart’s, to strengthen their proposal.

Despite Rappaport’s efforts and established deal-making reputation, Drahi’s offer ultimately prevailed. Access Industries, Blavatnik’s investment firm, stated that Drahi’s proposal represented a “better deal” for Channel 13, providing immediate funds. The deal is reportedly worth $40 million for the 14.99% stake. This decision, however, has raised concerns given Drahi’s existing ownership of a right-wing Israeli news outlet and the financial difficulties facing his broader business empire.

The sale has triggered a swift backlash from media watchdogs and political opponents. Ha’aretz, a liberal Israeli newspaper, published an editorial calling for the sale to be blocked, characterizing it as part of “Netanyahu’s media destruction project.” The Movement for Quality Government, an Israeli advocacy group, has formally requested the attorney-general investigate the deal, citing concerns about political interference and conflicts of interest.

Drahi’s existing media holdings in Israel include the cable television company Hot and the i24 news outlet. I24, which initially broadcast in multiple languages, has been scaled back to a single Hebrew channel and is widely perceived as supportive of Netanyahu’s political agenda. Drahi has reportedly invested nearly $500 million in i24, described by one source as a “grand, crazy, philanthropic project” to present an Israeli perspective in the Middle East.

The timing of the sale is particularly sensitive, coinciding with expected elections in Israel and ongoing legal proceedings against Netanyahu. Prosecutors allege that Netanyahu attempted to trade regulatory favors for favorable media coverage in separate corruption cases. Netanyahu denies these charges, arguing that a premier is entitled to seek positive coverage.

Regulatory changes currently under consideration by the Netanyahu government could further consolidate media control. These include establishing a government-controlled broadcast regulator and taking over the measurement of television audiences, a move that could significantly impact advertising revenue for independent channels. A bill is already in the Knesset seeking to remove restrictions on Drahi’s ownership stake in Channel 13, though its passage before the elections is uncertain.

The sale to Drahi adds to a pattern of media consolidation in Israel that critics say favors the Netanyahu government. The transformation of a state-funded heritage channel into the pro-Netanyahu Channel 14 and the dominance of the Israel Hayom newspaper, founded by the late Sheldon Adelson, are cited as examples of this trend.

While Drahi’s representatives have suggested his interest in Channel 13 is “purely commercial,” concerns remain about the potential for editorial interference. Yaniv Goldberg, of the Movement for Quality Government, believes the sale is part of a broader “master plan” by Netanyahu to control the media landscape. The tech entrepreneurs’ offer, in contrast, was presented as free from conflicts of interest, with the investors having no stakes in other regulated industries.

The outcome of this sale will likely have significant implications for the future of independent journalism in Israel, particularly as the country heads towards a crucial election period and continues to grapple with political and legal challenges facing its leadership. The fate of Channel 13 could serve as a bellwether for the broader health of Israel’s media ecosystem and its ability to hold power accountable.