At a press conference today, Channel 10 CEO Yossi Warshavsky stated that the channel had raised NIS 36 million to pay its debt to the Second Authority for Television and Radio, and called on the Second Authority council to grant the channel a license. Warshavsky declined to specify where he had gotten the money, saying that it was a loan, and that the requirement to prove financial soundness was unnecessary. He added that the channel would find an investor when it had a license, and if not, would pay for itself. With respect to the lender, Warshavsky said that he would receive interest on the loan or shares in the channel, so he could also later become an investor.
"Since Ron Lauder left, Channel 10 has suffered constant problems," Warshavsky said. "At a meeting with Second Authority CEO Shai Babad, he knew that Channel 10's survival was inevitable, and allowed a one-year grace period to pay the license fee. That year is now over. I was called to Channel 10, which was in a state of bankruptcy, in July. We formulated a strategic plan. The content is focused on current events and documentaries, not reality shows, which will no longer be broadcast on Channel 10. In the war, Channel 10 News proved how important it was to keep the channel alive. At the same time, we worked on a painful plan for the workers. We changed the company from one that relies on its shareholders to one that will be able to bring value to its owners. In the name of freedom of the press, it is better for the company to rely on its owners and on itself." Warshavsky added, "The only remaining debt is the license fee. We raised NIS 36 million, a letter will be sent over the next hour, and there is no reason not to grant us a license."
Channel 10 has less than three days remaining before the Second Authority forecloses its guarantees, and one week before its license expires and the channel is completely closed down. According to sources at Channel 10, assertions of the need for financial soundness are unimportant, because the Channel has undergone a "financial turnaround," and is now making an operating profit and paying for itself even under the current ownership structure. At the same time, the Second Authority asserts that financial soundness is of critical importance, given the necessary transition to a 15-year license. The Second Authority further states that the channel must meet a series of conditions, including payment of a NIS 3 million fee to show its serious intentions, a request from the Minister of Communications to retain the Channel 10 instrument, and negotiations with the Ministry of Finance for a valuation of the news company and the license extension, for which more money must be paid.
The channel says that these are purely technical matters serving merely as an excuse for those trying to evade their responsibility for granting the channel a license.
Commenting on the negotiations with possible investors, Warshavsky said, "Many are interested in the company because of its plan. The timetable does not allow the entry of an investor in Channel 10, and even if there is no investor, the channel can continue working and producing in order to provide service to its employees and the entire Jewish people. The short time left to us before Monday, when the Second Authority council will hold its meeting, is time for making sure that we are not left with only one commercial company, so that there will be pluralism. I call on Prime Minister Netanyahu, who has an obligation as Minister of Communications, to make sure that there is competition in the television market in Israel."
Earlier today, it was reported that Channel 10 was in advanced negotiations with Ami Giniger's Taya Communications for an investment in the channel. Sources inform "Globes" that the negotiations between the parties have warmed up in recent days, and a presentation will be made today to Taya's board of directors.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2014
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