The shareholders in television channel Reshet have cancelled the merger with Channel 10. According to today's announcement by the shareholders, the behavior of the Second Broadcasting Authority led to the cancellation of the merger - and Reshet is returning to full operation.
The Reshet shareholders say in their statement: "Unfortunately, despite the high esteem and the cooperation that existed between the shareholders of Reshet and of Channel 10, over the past few months throughout the stages of the negotiations up to the signature on the heads of the merger agreement, and despite the understanding that a merger between the two channels is the most appropriate solution for the Israeli television market, the shareholders in Reshet 13 have been forced to announce today that the merger is cancelled and that Channel 13 is returning to full operation, including planning and investing in the broadcasting schedule.
"In the next few days, the company's board of directors will meet to formally revoke the decision on the merger made several months ago, and it will instruct the company's management to present its operational plan and broadcasting schedule for the coming years.
"This decision has been forced on the shareholders, as a company cannot be run for an extended period of time amid uncertainty, especially a television channel that is obliged to plan future productions and so on.
"Therefore, in the light of the delays and foot-dragging by the Second Broadcasting Authority and its decision to hold a hearing, that would actually take months, and in the absence of any positive statement from the Authority on the appropriateness of the move as a way of resolving the situation in the Israeli television market, the Authority's conduct can have only one outcome - the torpedoing of the merger, and this after the Antitrust Commissioner examined in depth the principles of the merger and the options available, and decided to approve it. In the circumstances, the shareholders have been compelled to put an end to this impossible situation and to announce that the merger will not take place.
"The shareholders in Reshet 13 express their great appreciation for the conduct of the shareholders, management and staff of Channel 10 and 10 News, who understood that the merger was vital, despite its complexity. We still believe that the right way forward for the local television market is to join forces, but with heavy hearts, and despite the many efforts, we have reached the point at which we have to take a realistic view, and to invest the major management efforts and the resources in Reshet 13, and to continue to offer viewers high quality, interesting and relevant television in the coming years as well," the Reshet shareholders' announcement states.
The Second Broadcasting Authority stated in response: "The Second Authority for Television and Radio has done its work faithfully and will continue to do so in the future as well. Our concern will continue to be the commercial communications market and the broadcasting channels."
The shareholders of Channel 10 said in a statement: "We find the decision by the Reshet shareholders not to continue with the merger process, because of the difficulties put in the way by the Council of the Second Authority for Television and Radio, regrettable. We are now examining the matter and will act accordingly."
Published by Globes [online], Israel business news - en.globes.co.il - on October 15, 2018
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