Commercial television broadcasters Reshet and Channel 10 signed a merger agreement on Wednesday. The pact, which is still subject to regulatory approval, including approval by the antitrust commission, provides that shareholders will not sit on the merged entity’s board, which will be limited to professionals.
In a joint statement, Reshet and Channel 10 said they would manage to retain a substantial majority of employees of the two stations, but it is expected that Channel 10 staff will suffer disproportionately from the merger. At the beginning of the week, prior to the signing of the merger agreement, Channel 10 CEO Yossi Warshavsky suggested that staff begin looking for jobs elsewhere.
Until November of last year, Reshet and broadcast franchisee Keshet shared the broadcast week on Channel 2 and jointly operated the station’s news programming. At the behest of government regulators, Keshet and Reshet went their separate ways in November, each broadcasting a full week’s schedule on Channels 12 and 13 respectively but they continue to share a news operation.
The planned between Reshet and Channel 10 which, despite its name, now broadcasts on Channel 14, will mean that Reshet will sell its stake in the news operation to Keshet. Channel 10’s news operation will serve the new merged entity.