Len Blavatniks Access Industries and Warner Bros. Discovery have unveiled a management buyout deal to cut their stake in Reshet 13, the Israeli broadcast giant, to 26 percent.

As part of a proposed transaction still in the outline phase, a management group led by CEO Emiliano Calemzuk will emerge with a 74 percent stake in the Hebrew-language Israeli TV network operated by Reshet Media. The proposed transaction for a change of control at Reshet 13 which is known for series like Netflixs Blackspace and the Ozs List, The Journey of Oz Davidian documentary about the Oct. 7, 2023 terrorist attack on Israel will see Access Industries and WBD retain a 26 percent stake. Access and WBD are supportive of the management and employee buyout and want them to succeed. Its important to retain employment at the channel and to support the country and its democratic media, a spokesperson for Access Industries told The Hollywood Reporter. Access Industries, the privately-held company with holdings in music, media and telecommunications, including DAZN and Warner Music Group, first invested in Reshet 13 six years ago.

In 2021, then Discovery Communications took a 21 percent stake in Reshet 13, with Access Industries holding a 52 percent stake, alongside Israeli minority shareholders. Its understood Blavatnik has invested many tens of millions of dollars in Reshet over the last few years, according to sources, but has chosen to transfer his majority shareholding to management and their new investors to keep Reshet in operation as it looks to restructure and secure new growth capital.

Blavatnik has also injected further financing into Reshet to secure its balance until the management group takes the helm as the new controlling stakeholder. CEO Calemzuk is backed by a consortium of Israeli and international investors drawn mainly from the media, entertainment and technology sectors.

The proposed change of control transaction also aims to allow Reshet 13 to give employees the opportunity to take part in the companys ownership through a stock options plan to be rolled out later this year. Reshet 13 is looking return to profitability in 2026.