The Council for Cable and Satellite Broadcasting today canceled the Television News Company’s franchise to operate a news channel, the first such measure in the history of Israeli broadcasting.
The tender for the news channel was published in November 2000. Israel Television News, composed of Globus News, Adv. Zvi Hefetz, Formula Group controlling shareholder Dan Goldstein, Roni Savir, Oded Mozes, the Roichman family, Shmuel Slavin, Moshe Gal, and Zvi Hauser, obtained the franchise after a legal battle. The license was granted in September 2002, but the company failed to put the channel on the air, despite a NIS 7 million investment.
A framework was established that used the news department of Channel 10 for a year, but after the contract with Channel 10 ended, the Israel Television News owners became embroiled in a lengthy dispute, pitting Globus News against Hefetz. The Council for Cable and Satellite Broadcasting decided several weeks ago to invalidate the license automatically as of today, unless Israel Television News ended the dispute and presented a structure, management, and practical operating plan. Yoram Globus’s attempt in recent weeks to sell a controlling interest to Israeli-British businessman Samuel Hayek failed.
A spokesperson for Globus Group said in response to the report, "Globus News still believes and hopes that there is a chance for a news channel in Israel. We have heard the headline of the decision and when we receive it in full we will study it and respond. However, Globus News complied with all the requirements for the license to be retained, and made this known to the Council for Cable and Satellite Broadcasting and its chairman. On the face of it, the council's decision therefore seems puzzling."
Published by Globes [online] - www.globes.co.il - on July 29, 2004