hannel 10 granted 6-month reprieve

Channel 10 granted 6-month reprieve

Attorney-general extends Channel 10's franchise at the last minute, says decision on its future cannot be made during election time • New government will have to advance legislation on station's permanent license • Channel executives optimistic.

Mati Tuchfeld, Eran Suissa, and Israel Hayom Staff

Channel 10 will continue broadcasting for at least another six months as per Attorney-General Yehuda Weinstein's decision

Attorney-General Yehuda Weinstein on Tuesday prevented the demise of Channel 10, whose franchise was set to expire at midnight, ruling that its future could not be determined during election time and granting it a six-month reprieve. Weinstein ruled that once a new government is in place, it will have to advance legislation regulating the channel's permanent broadcasting license.

A statement issued by the Second Authority for Television and Radio said, "The attorney-general has ruled that the decision on Channel 10's future must be postponed by six months, pending the results of the elections and the formation of a new government. Accordingly, the channel's broadcasting franchise has been extended by six months, during which the government will promote legislation that will resolve the issue of its broadcasting license. Until such time, the channel's broadcasts will continue as usual."

Weinstein's ruling effectively overruled the Second Authority's jurisdiction on the matter. However, he had to weigh in on the crisis as according to Israeli law, once the Knesset is dissolved (as it was recently, ahead of the coming elections), all legislative proceedings are suspended.

Prime Minister Benjamin Netanyahu, who is also acting communications minister, was briefed on the decision and said he agreed with it and would abide by it. Channel 10's management was not included in the meeting between the attorney-general and the Second Authority.

Channel 10 began broadcasting in 2002 as Israel's second commercial television channel. In accordance with the Second Authority's guidelines, the station was initially granted a temporary, six-month broadcasting permit, which was later converted into an annual franchise. The franchise was meant to be upgraded to a 15-year broadcasting license as soon as the new channel proved it was financially stable, but Channel 10 has been struggling to meet the criteria, and although the Second Authority has been periodically renewing its franchise, it has faced closure several times.

The channel is currently in debt to the state to the tune of 60 million shekels ($15 million). Businessman Yossi Meiman is the controlling shareholder of Channel 10 with 51 percent, Hollywood tycoon Arnon Milchan owns 24 percent, and the remaining 25 percent has been held by a trustee since 2013, when businessman Ron Lauder bowed out of his share in the venture.

The channel has been on the brink of insolvency for years and has been afforded several debt restructuring and rescheduling allowances, to no avail. Its latest franchise was set to expire at midnight Tuesday, prompting its executives and the Second Authority to hold marathon discussions to keep it on the air.

Weinstein's decision has afforded Channel 10 more time to raise the funds needed to pay its debts. The channel will have to prove both financial solvency and resilience to secure its 15-year broadcasting license. Should it fail once again, its franchise could be revoked. Channel 10 officials expressed optimism Tuesday, saying the mechanism put in place by Weinstein and the Second Authority would allow the channel to raise the necessary capital and meet the criteria.

As part of its efforts to remain on the air, Channel 10 voluntarily suspended regular programing for several hours late Sunday night, replacing its broadcasts with a slide urging Netanyahu to intervene in the crisis plaguing it. Hundreds of Channel 10 employees, as well as several MKs, staged a protest rally in Tel Aviv on Tuesday evening, again urging the prime minister to step in.

Some in Channel 10 News have claimed that Netanyahu has refrained from weighing in on the crisis because of unflattering reports about him -- an allegation the prime minister's associates have categorically denied. Prior to the Second Authority's statement, a political source familiar with the issue told Israel Hayom, "The discourse promoted by the channel is tainted with blatant hypocrisy. They have placed Netanyahu in the front and they are accusing him of hoping the channel will be shut down, when they know very well that it was Netanyahu who two years ago approved the [debt restructuring] mitigations that have been keeping the channel afloat."