"Ma'ariv" needs further capital injection

Publisher Shlomo Ben-Tzvi is seeking funds from his father-in-law Conrad Morris.

Hebrew daily "Ma'ariv" publisher Shlomo Ben-Tzvi is seeking an additional capital injection into the newspaper from his father-in-law, Conrad Morris. Sources inform ''Globes'' that "Ma'ariv" has cash flow problems and may not be able to pay February salaries on time. The newspaper is already delaying payments to freelancers, sometimes for weeks, and is freezing planned projects.

The slowdown in the print media is hitting "Ma'ariv", which was already in fragile shape. Ben-Tzvi has been keeping the newspaper going with capital injections from his family, which has frequently expressed doubts about its financial viability over the past 18 months. More than once, Ben-Tzvi, who also serves as "Ma'ariv's" editor-in-chief, has persuaded his father-in-law to inject more capital into it.

On Monday, "Ma'ariv" employees were informed about operational problems in its online edition and about progress in its English edition, for which employees have already been hired.

In the past few weeks, "Ma'ariv" CEO Israel Goldstein and VP commerce Ronny Zilberberg have announced their resignations. Media sources say that Goldstein resigned in part because he did not want to make more cutbacks, although "Ma'ariv" denies this.

"Ma'ariv" declined to comment to the report.

Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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