The cuts in the industry continue, reaching the strongest communications group in Israel: the Tech12 website will be closed in its current format, reducing its activity - Walla has learned! Berenger.
Tech12 was founded two years ago under Keshet's Mako Group, and is expected to merge into N12, following the ongoing crisis in high-tech in Israel, which is also exacerbated by the regime coup and protests.
The site was established two years ago, at the height of the boom period of the Israeli high-tech industry, when the advertising budgets of high-tech companies directed to employer branding and recruitment were at their peak. In the past two years, the high-tech bubble burst and investments in high-tech in Israel have plummeted to a 5-year low, reaching the historic low level of the first weeks of the coronavirus. In contrast to the trend of recovery that began around the world in recent months, in Israel the slowdown continues in full force following the legal legislation crisis.
The site currently has 12 employees, and according to sources at Keshet, the intention is to keep the brand in a smaller format and integrate it into N12, while tightening cooperation with mako's digital department.
Beit Keshet (Photo: Ortal Dahan)
With its establishment, the niche website for the high-tech community aroused great tension between Keshet 12 and the economic press, especially the Yedioth Ahronoth group over the issue of "hunting for talent" recruited from its ranks. And certainly those that in most cases the economic press cannot deal with.
In Keshet's first round of funding for the new website at the time, Walla! Berenger for offering high salaries to journalists, and certainly those that in most cases the economic press cannot handle, while "breaking the market" and diluting competitors. In addition, the request was then to sign the former editor of Yedioth Ahronoth's Mamon supplement and Globes' G Ilil Ben Tzur, to the position of editor of the site.
Sources in the financial press even noted at the time: "Keshet is using Coca-Cola's money to bring down the competing media. They offer high-tech journalists crazy salaries just to defect to them. It's crazy and it's clear that whoever is leading this is the landlord himself." The Wertheim family's main soft drink company is the controlling shareholder of Keshet.
Tech 12(Photo: screenshot, tech12)
In a letter sent to employees from Mako, Mako Group CEO Uri Rosen wrote, "We founded Tech12 two years ago and the team that worked on the site – both in content and characterization, design, development, marketing and production – did an outstanding job, quickly turning the site into a major brand in Israeli high-tech, with many prominent and especially in-depth stories and exposures, and with an excellent newsletter. But the site was established at the height of the boom period of the Israeli high-tech industry, when advertising budgets directed to employer branding and recruitment were at their peak. Shortly after its establishment, the global high-tech bubble burst – a possibility we had prepared for in advance and knew how to withstand a prolonged period of almost complete reduction of advertising budgets in the field. But while the world is already seeing a trend of recovery, in Israel the slowdown continues in full force following the political crisis, and it does not appear that the budgets we built on will return in the foreseeable future."
- Yedioth Ahronoth
- News 12