A group led by Wiz co-founder and CEO Assaf Rappaport is acquiring control of Israeli digital media company Israel Entertainment.

The deal is valued at NIS 48 million (US$16 million), based on a company valuation of NIS 80 million (US$26 million).

The deal will go through Merit, the vehicle used in the group’s Reshet 13 transaction.

Merit will take a 60% stake in Israel Entertainment, with an option to buy another 25%.

The Reshet 13 investment was structured through the Merit Spread Foundation, which has been raising donations for social causes.

The buyer group also included other Wiz founders and Israeli tech investors.

The group plans to inject about US$120 million into Reshet 13.

Israel Entertainment operates Instagram and TikTok channels including Israel Entertainment, Israel Music, Israel Sport, Israel Business, Israel Office, Israel Shorts, and Israel Cooking.

The company reaches more than 4 million followers across its network, while founders David and Shlomo Sa’ar will remain in charge.

There are no plans to merge Israel Entertainment with Reshet 13. The source material did not say whether the acquisition requires regulatory approval.

🔗 Source: Calcalist