Internet portal Walla Communications Ltd. (TASE: WALA) and Channel 2 portal Mako are in talks to establish a model for long-term collaboration. Sources close to Channel 2 franchisee Keshet Broadcasting Ltd. said two main alternatives were under consideration. The first is based on the two portals' current collaboration, in which Walla! supplies Mako with text content, and Keshet provides video and television content. The second option is based on the acquisition of stakes in the Walla! portal.
In February, Haaretz Group announced that it wanted to sell its 32.6% stake in Walla! Although several parties expressed an interest, including second-hand listings portal Yad2 controlling shareholder Tiger Holdings Ltd., no deal was ever reached.
Walla! and Mako have been in talks for months, during which time they launched a pilot portal, in which Channel 2's Polyshuk TV show could be viewed on Walla! Market sources claim, however, that viewing rates have been low, and that the two companies are dissatisfied with the results.
TIM TNS/Teleseker survey of Internet sites for September 2009 found Walla! in second place, with a weekly exposure rate of 67.3%, ahead of Hebrew daily Yediot Ahronot's news site Ynet, with 63.5%. Mako was in seventh place, with a weekly exposure rate of 28.2%.
Walla! was unavailable for comment, and Keshet declined to comment.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2009
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