Management Buyout Restructures Stake in Reshet 13
Len Blavatnik’s Access Industries, alongside Warner Bros. Discovery (WBD), has disclosed a strategic management buyout designed to reduce their ownership in Reshet 13, a prominent Israeli broadcasting entity, to a minority 26 percent stake. This significant move signals a transition in control aimed at bolstering the network’s sustainability and growth prospects.
Details of the Proposed Transaction
Currently in the preliminary stages, the transaction plans to empower a management consortium, spearheaded by CEO Emiliano Calemzuk, to acquire a commanding 74 percent of the Hebrew-language television network managed by Reshet Media. Reshet 13 has garnered attention for its popular productions, including the Netflix series Blackspace and the impactful documentary The Journey of Oz Davidian, which chronicles the tragic events of the October 7, 2023 terrorist attacks in Israel.
Supportive Stakeholders
A spokesperson from Access Industries has expressed their endorsement of the management buyout, emphasizing, “Access and WBD are supportive of the management and employee buyout and want them to succeed. It’s important to retain employment at the channel and to support the country and its democratic media.” This commitment further highlights the company’s dedication to maintaining operational stability within the network.
Investments and Historical Context
Blavatnik’s Access Industries has a longstanding relationship with Reshet 13, having invested in the company six years ago. In 2021, Discovery Communications acquired a 21 percent stake, increasing the broader partnership’s influence alongside minority shareholders in Israel. Sources indicate that Blavatnik has invested “many tens of millions of dollars” into Reshet over recent years, underpinning the network’s efforts to restructure and seek new avenues for capital growth.
Financial Support and Future Directions
As part of the transition strategy, Blavatnik has provided additional financing to bolster Reshet’s financial stability until the management team assumes control. CEO Calemzuk is now backed by a diverse coalition of investors from both Israeli and international spheres, primarily within media, entertainment, and technology sectors.
Empowering Employees Through Ownership
The transition not only seeks to redefine ownership but also includes plans to implement a stock options program aimed at granting employees a stake in the company. This initiative is expected to launch later this year, fostering a culture of shared investment. Reshet 13 has set its sights on achieving profitability by the year 2026, cementing its commitment to navigate the evolving media landscape effectively.