Anti-Trust Authority director-general David Tadmor: Deal is conditional on Bezeq and Bezeq International offering equal conditions to Walla! competitors.
The Ministerial Committee for Privatization today approved the transaction under which Bezeq Internation (BI) acquired 26% of the shares of the Walla! portal for $6 million. The Committee approved the deal after Anti-Trust Authority director-general David Tadmor gave it his approval. BI purchased the shares from Mashov Marketing of the Formula group. Company value for the deal was estimated at $23 million after money. Following the transaction, Walla! is owned by Mashov Marketing (32%) BI (26%), managers (8%), and the public (34%).
BI general manager Uri Yogav and Formula chairman Dan Goldstein said they would act toward the granting of an option to Bezeq International to enable BI to increase its holdings in the company to 50% of the shares withing a few months. The method chosen is new share allocation in Walla!, rather than buying additional shares from Mashov.
Yogav noted that the transaction constitutes another stage in the actions of Internet@Bezeq International (BI's Internet provider), which are designed to extend the company's activity in the content field, and strengthen its status as a leading player in the Internet market in the private and business sectors.
Published by Israel's Business Arena on January 2, 2000