Bezeq The Israeli Telecommunication, IL0002300114

Bezeq weighs yes merger as tax rules reshape Bezeq stock

Published on 10/16/2026 at 10:39 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Regulators are considering a merger with yes after a 20-year separation. For Bezeq stock, the plan could unlock ILS 1.2 billion in tax savings over 10 years.

Merger process and valuation

On October 6, 2026, ministries considered ending Bezeq's structural separation from yes.
The proposal could use ILS 5.3 billion of yes losses for ILS 1.2 billion in tax savings over 10 years.
Bezeq stock stood at ILA 723.70 on TASE on October 16, 2026 at 11:22 a.m. IDT.

Bezeq The Israeli Telecommunication, IL0002300114, Illustration mit AI erstellt.

Bezeq is at the center of a proposed merger with yes after Israel's regulators examined ending the group's 20-year structural separation. The October 6, 2026 proposal could unlock ILS 1.2 billion in tax savings over 10 years, according to Economix.

Tax asset drives the proposal

The proposed combination would allow Bezeq to use ILS 5.3 billion of accumulated losses at yes against group profits. The financial benefit would amount to ILS 120.0 million a year, while the merger could also enable combined internet and television packages.

The regulatory process still carries execution risk. Economix reported that the ministries planned public hearings and that an effective merger was not expected before 2027, leaving the tax benefit dependent on approval and operating conditions.

What does the latest report show?

Bezeq's first-quarter 2026 release showed core revenue of ILS 2.03 billion, up 2.60 percent from the first quarter of 2025. According to Bezeq, comparable net profit rose 4.20 percent to ILS 300.0 million, while free cash flow increased 74.00 percent to ILS 455.0 million.

The same release set 2026 compensated EBITDA guidance at ILS 3.7 billion to ILS 3.8 billion and compensated net profit guidance at ILS 1.0 billion to ILS 1.1 billion. Those ranges give investors a benchmark for judging whether any future merger benefit adds to operating performance or mainly affects taxes.

Valuation remains income focused

Dividend income remains part of the investment case. Simply Wall St reported on September 16, 2026 that Bezeq had declared a total dividend of USD 0.05 per share and cited a fair value of ILS 8.55. The report also identified tougher regulation and pressure on mobile average revenue per user as risks.

Stock level and next steps

Bezeq stock stood at ILA 723.70 on TASE on October 16, 2026 at 11:22 a.m. IDT. Its same-day 52-week range was ILA 625.10 to ILA 913.60, putting the quotation below the yearly high while leaving the merger decision as the key regulatory variable.

The further course of trading is shown by the continuously updated real-time quote of Bezeq The Israeli Telecommunication stock.