The “Yediot Ahronot” Hebrew daily reports that billionaire Ron Lauder and businessman Vladimir Gusinsky are in advanced negotiations for an investment in Israel 10, the Channel 10 franchise holder.
The extent of Lauder and Gusinsky’s holdings have yet to be finally determined. Israel 10 chairman Joseph (Yossi) Maiman, who owns 40% of the channel, wants to remain the leading shareholder. Sources added that Maiman, together with Lauder and Gusinsky, would inject NIS 175 million into the channel when an agreement was signed.
Maiman began a campaign last week to recruit media stars and prominent producers for Channel 10, while simultaneously negotiating with potential investors. Lauder and Gusinsky have examined Channel 10 in recent week, holding long meetings and discussions with its management. Gusinsky also visited the Channel 10 offices in Givatayim.
Lauder and Gusinsky have cooperated before in the communications field. Both have experience in the TV market, both own foreign TV stations, and both are familiar with the Israeli market. Lauder controls JCS, while Gusinsky owns part of the “Ma’ariv” controlling interest, and also has holdings in the Russian-language press. An investment in Channel 10 is liable to encounter opposition from the Antitrust Authority director general, because of cross-holdings.
Channel 10 has lost NIS 122.7 million since going on the air in January. Other Channel 10 shareholders include Alfred Akirov, through Alrov Real Estate and Hotels (20%), Israel Phoenix Assurance (13.5%), and Isal Amlat Investments (6%). Maiman reportedly plans to offer the shareholders part of the deal, which will require them to either invest or have their holdings diluted.
Published by Globes [online] - www.globes.co.il - on December 19, 2002