Free newspaper "HaYisraeli" is losing hundreds of thousands of dollars each month, sources in the media market estimated today.
Jewish billionaire Sheldon Adelson has announced that he will invest additional funds into the newspaper while diluting Shlomo Ben Tzvi's 50% stake.
It is believed that investments in "HaYisraeli" have amounted to tens of millions of dollars to date, and that similar amounts are expected to be invested in the coming three years.
In contrast to the loss estimates, sources close to Hirsh Media claim that the newspaper will soon break even operationally. According to these sources, the newspaper has expanded to 40 pages instead of 24, because of demands from advertisers.
Ben Tzvi responded to reports about the dilution of his holdings that he currently had no plans to sell. A spokesman for Hirsh Media, which is owned by Ben Tzvi and is a partner in "HaYisraeli", declined to comment on the reports.
Asher Baharav, Adelson's representative in Israel, is due to be appointed CEO of the newspaper, a position which had previously not existed there.
"HaYisraeli" was launched on January 1, 2006. Ben Tzvi was the initial backer of the newspaper but shortly afterwards, it was reported that Adelson had entered as a partner taking a 50% stake. Ron Lauder is a minor investor.
Published by Globes [online], Israel business news - www.globes.co.il - on September 5, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006