The transaction in which businessman Vladimir Gusiinsky is to purchase 25% of the shares of "Ma’ariv", is due to introduce a high-powered new element into Israel's printed press sector, without, however, altering its balance of power. In recent years, Israel's daily press has been controlled by four families: Mozes in "Yediot Ahronot", Nimrodi in "Ma’ariv", Shocken in "Ha’aretz" and Fishman in "Globes"; Fishman also holds a stake in "Yediot Ahronot".
The last transfer of control in the sector took place in 1992. Yaakov Nimrodi and his son Ofer acquired control of "Ma’ariv", then troubled by losses and deficits, from the family of the late Robert Maxwell. Since then, in an impressive recovery bid, based on the financial capabilities of the group leaders, "Ma’ariv" has been transformed into Israel's second biggest media group.
The major media groups, which, in recent years have expanded to beyond the printed press, forged ahead of four other daily papers, "Hadashot", "Davar", "Al-Hamishmar" and the economic newspaper "Telegraph". All four have been forced out of business in recent years.
With the commencement of Channel Two’s commercial television broadcasts at the end of 1993, both processes speeded up. The tycoons controlling the major newspapers read the future media map, and angled for a share in the commercial channel franchises. "Yediot Ahronot" and "Ma’ariv" succeeded, and were thus better able to sustain the expected whittling away of their slice of the advertising pie. Those who lagged behind could only gaze from the sidelines at the channel’s phenomenal success. Not all survived.
The past year, although unruffled by the transfer of control in any newspaper, was marked by a number of interesting deals, apart from the Gusiinsky-"Ma’ariv" one. In September 1997, Zeev Mozes sold 24% of the shares of the "Yediot Ahronot" group. Businessmen Eliezer Fishman and the late Haim Bar-On purchased 12% of the shares, while the balance was spread among existing shareholders, proportionate to their respective stakes in the newspaper.
Some weeks ago, Fishman completed his purchase of additional shares in "Yediot Ahronot" held by Tami Mozes-Borovitz, reaching a 24% holding in the Yediot group shares. Fishman is believed to have made his debut at an estimated "Yediot Ahronot" group value of $700 million.
Another transaction was recorded last March. The Discount Investments group, through cable television company Tevel, purchased the cable TV’s shares in Gvanim from US Cabletel. Under the terms of the package deal, Tevel also received a third of the shares of Monitin Itonut company, the owner of business newspaper "Globes". Two months later, Discount sold its holding in Monitin Itonut to Fishman for $45 million, the same as its own purchase price.
With the other media groups stable, "Yediot Ahronot" is actually the only one which today has no one dominant shareholder. Editor-in-chief Noni Mozes formerly entered into an alliance with Mimi Nofech-Mozes, so as to control the group in face of the opposing front formed by the other shareholders. Fishman’s aggressive entry into Yediot may secure the control for Mozes if the two men actually co-operate, as prevailing opinion expects they will. On the other hand, it makes the future of the newspaper’s control far more interesting.
Published by Israel's Business Arena May 25, 1998