DAY 452 OF THE WAR: 2024 A Look Back at a Very Difficult and Challenging Year, Houthis, Hostages Constantly on Our Minds, Economic Edicts of January 2025
2024 was the first year in Israel’s history during which the country was at war for the entire year. It is very challenging to evaluate this year, as we are still very much living through its impact. Some developments have been completely beyond belief.
At the start of the year, had you told me that we would still be embroiled in conflict in Gaza a full year later, I would have found it impossible to believe. The notion that 100 hostages would remain in Gaza’s tunnels after a year would have seemed equally implausible. The fact that Hamas managed to launch daily rocket attacks on Israel in the last five days of 2024, including one that reached near Jerusalem—coupled with their strike just a minute after midnight tonight—would have been beyond my belief. Perhaps most disheartening, the knowledge that this horrible year is ending without the formation of a National Commission to Investigate the war—or even the prospect of one in the works, would have defied all expectations
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Conversely, had you told me at the start of the year that we would engage in an all-out war with Hezbollah yet see minimal damage to central Israel, I would have been highly skeptical. Considering our extensive preparations for staying in bomb shelters, it's remarkable that our visits were only occasional and brief each time. Furthermore, if you had claimed we would undertake a direct confrontation with Iran that would, at least for now, culminate in a decisive victory for Israel, I would not have believed you. Lastly, had you suggested that Assad’s Syrian regime would collapse within days, and that the new Syrian government would regard Iran as their number one enemy, I certainly would not have believed you.
Assessing what has arguably been one of the most difficult years in our history is an exceedingly complex task. As this awful year finally comes to an end, Israel’s strategic position in the Middle East has never been stronger. Simultaneously, our society finds itself both fortified and fragmented. Since October 7, there has been an unprecedented display of unity, with countless volunteers stepping up and reservists performing their duties with unparalleled dedication. However, the country has never been so deeply divided, and in ways we might not have expected. It is particularly disconcerting that families of hostages have been targeted for political reasons, an act that is simply beyond comprehension.
For many, one of the year’s most significant surprises has been the failure of the ultra-Orthodox community to come forward to share the societal and military burdens meaningfully. At the onset of the war, there was optimism that the ultra-Orthodox would recognize the necessity of integrating with the broader society and contributing to the collective national effort. Unfortunately, this shift did not materialize. The crisis of the Haredi community evading their communal responsibility now threatens the stability of the government— and is the one issue that could potentially bring down this disastrous government.
There is currently no legal framework exempting the ultra-Orthodox from military service. Many have received draft notices, and the vast majority who have ignored these notices are now barred from leaving the country. The ultra-Orthodox parties are demanding legislation that would formally exempt their constituents from the draft. However, the coalition is struggling to craft a bill that would be acceptable both to the ultra-orthodox, and the rest of the coalition.
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GAZA
After more than an entire year of operation inside Gaza, there is still no strategic plan for governance of Gaza the “day after”. Over the past year, the IDF has moved from one area of Gaza to another, eliminating Hamas operatives while sustaining troop losses in the process. Houses are destroyed in one area before forces move to another, only for Hamas to reoccupy the vacated zones. A primary objective of the conflict has been the removal of Hamas from power in Gaza. Yet, even after a year and three months since the war began, there has been no substantive discussion on what the envisioned post-war structure of Gaza should look like. Consequently, it is no surprise that this conflict has no end in sight.
Lastly, looking back on the past year, it is impossible not to mention our new “friends,” the Houthis. Like so many other developments this year, their emergence has been almost entirely unexpected. Before the war, the mention of “Houthis” would likely have drawn blank looks from most Israelis. Now, every night we find ourselves bracing for the possibility of a sudden dash to the bomb shelter or safe room. The most disturbing aspect is that commentators suggest this could go on for weeks, if not months. While I doubt it will last for months, how it will end is still unclear.
Last night and again today, the United States and Great Britain launched attacks on Houthi targets in Yemen, marking a noticeable escalation in coalition strikes over the past 10 days. Today’s strike was one of the rare daylight operations conducted by the U.S. The impact of these attacks on the Houthis is still unclear— more information will emerge over time.
HOSTAGES
It’s been cold and rainy in Tel Aviv, with flooding reported in several Israeli cities. Yet, such concerns pale in comparison to the plight of hostages enduring the same harsh conditions in tunnels beneath Gaza, struggling to survive through same rain and cold. It’s trivial to complain about the weather sitting in the comfort of our warm, dry homes. Every day, I walk through Hostage Square, knowing that I’m powerless to do anything to secure their release—ultimately, the decisions required rests on one individual. Yes, Hamas may be responsible for the lack of a partial agreement, however, securing the return of all hostages seems contingent on agreeing to end the war. Almost no one believes that we are achieving much by repeatedly clearing different neighborhoods in Gaza, while putting our soldiers’ lives at constant risk.
There’s another dimension to this situation—one that is uncomfortable to confront: i.e., the plight of over a million Gazans living in tent cities amid the cold and rain. While I do feel some concern for these people, their circumstances could be resolved if Hamas would agree to return the hostages and permit its leadership to exit Gaza. However, the apparent disregard of Hamas for its own people raises a difficult question: how much empathy should I extend them? I struggle to find an answer.
The Knesset vote I mentioned last night occurred earlier than anticipated due to a 3 PM deadline. Ben-Gvir and most of his party, along with some members of the Charedi parties, voted against the measure. Consequently, Prime Minister Netanyahu was forced to leave his hospital bed—against medical advice—to go to the Knesset and vote. Similarly, another Likud Knesset member had to interrupt sitting Shiva for his mother to cast his vote. Efforts to convince Ben-Gvir to at least abstain—and avoid these drastic measures—were unsuccessful. The tax measure ultimately passed by a narrow margin of just one vote. With this win, the coalition cleared another hurdle, but only barely. The enacted law imposes a tax on undistributed corporate profits. Ben-Gvir has expressed anger and frustration that his proposed police salary increases did not receive the support he feels they deserve.
JANUARY 1, 2025: ECONOMIC EDICTS
A series of economic edicts will take effect tomorrow, increasing costs for everyone in Israel.
These include:
A 1% increase in VAT, raising it from 17% to 18%.
Electricity rates will rise by 3.5%.
Water prices will go up by 2%.
Local taxes will increase by 5.3%.
Social security taxes will increase by between 48 and 60 shekels per month.
The cost of public transportation will rise by 30%.
A WORTHWHILE READ
Dahlia Scheindlin has written an interesting article in Haaretz, titled: “Palestinians Are Souring on Hamas— and They Want an End to the War.” As an expert pollster, Dahlia looks at a number of different polls and concludes that the Palestinians are tired of war and no longer believe that armed conflict will gain them statehood. However, a majority still believes that the attacks on October 7th were justified.
Here is a summary released by the Shin Bet outlining its activities for 2024:
Key Points
The Shin Bet, Israel’s internal security agency, has released its annual report, highlighting its extensive efforts to counter terrorism and espionage threats in 2024. Here are the key takeaways:
General Overview
Successfully foiled 1,040 major terror attacks in Judea, Samaria, and Jerusalem.
Interrogated 650 suspects from Gaza and dismantled 20 terror cells among Arab Israelis.
Played a significant role in detaining 1,350 Palestinians, including:
40 senior commanders.
165 individuals closely connected to top officials.
45 suspects involved in the October 7 attacks.
100 suspects with intelligence on hostages.
Overall, handled 2,500 suspects, with interrogations yielding critical information for military operations.
Conducted three hostage rescue missions and recovered the bodies of captives.
Lebanon Operations
Eliminated 25 senior commanders from groups such as Hamas, al-Jama’a al-Islamiyya, and the Popular Front for the Liberation of Palestine.
West Bank and Jerusalem
Prevented a wide range of attacks, including:
689 shootings.
326 bombings.
13 stabbings.
9 car-ramming incidents.
2 suicide bombings.
1 kidnapping attempt.
Reported a 40% drop in terror attacks compared to the previous year.
Conducted numerous special operations, including hospital raids in Jenin and Nablus.
Inside Israel
Disrupted 20 terror cells among Arab Israelis, including 5 groups planning attacks using explosives or car bombs.
Deployed the Tequila elite counterterrorism force32 times to stop imminent attacks.
Iranian Threats
Recorded a 400% increase in espionage-related arrests, with 27 indictments filed.
Foiled 13 espionage attempts or collaborations with Iran.
Security Operations
Executed hundreds of complex operations in high-risk zones, including Gaza, Lebanon, and Syria.
Participated in overseas missions tied to major events, such as the Olympics and Eurovision.
Cyber Defense
Faced an unprecedented rise in cyber threats, with attacks increasing fivefold during the war.
Collaborated with the IDF and the National Cyber Directorate to thwart 700 cyber attacks.
The Shin Bet’s report underscores its pivotal role in ensuring Israel’s security, particularly during a challenging year marked by heightened threats on multiple fronts.
ECONOMY
A Quarter Century of Exits: The Top 10 Mergers and Acquisitions in Israeli Tech
Over the past 25 years, Israel has cemented its reputation as a global tech powerhouse, producing groundbreaking startups that have captured the attention of the world’s largest technology companies. From autonomous vehicles to cybersecurity, these landmark acquisitions underscore Israel’s pivotal role in shaping global tech innovation. Below is a list of the top 10 M&A (mergers and acquisitions) deals involving Israeli tech companies, showcasing the growing influence of its startups across key industries.
1. Mobileye’s Acquisition by Intel – $15.3 Billion (2017)
Mobileye, a pioneer in autonomous driving and advanced driver-assistance systems (ADAS), was acquired by Intel in 2017 for $15.3 billion. Founded in 1999, the Jerusalem-based company revolutionized vehicle safety with its vision-based systems and sensor technologies. Intel’s acquisition reshaped the autonomous vehicle landscape, placing Israel at the forefront of mobility innovation. Mobileye, which was publicly traded before the acquisition, returned to the stock market in 2022 when Intel floated its shares again to raise funds
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2. Mellanox Technologies’ Acquisition by Nvidia – $6.9 Billion (2020)
Nvidia acquired Mellanox Technologies in 2020 for $6.9 billion, bolstering its portfolio of high-performance computing solutions. Founded in 1999, Mellanox specialized in networking products for data centers and supercomputers. The acquisition strengthened Nvidia’s foothold in the data center market, catering to the rising demands of AI and cloud computing. Nvidia has since become one of the world’s most valuable companies, trading at a valuation exceeding $3 trillion.
3. NDS Group’s Acquisition by Cisco – $5 Billion (2012)
In 2012, Cisco acquired NDS Group for $5 billion to enhance its video and content delivery technology. NDS, a leader in video encryption and content security, helped Cisco serve pay-TV operators and better compete in the global video distribution market.
Lucent Technologies acquired Chromatis Networks for $4.5 billion during the dot-com boom. Chromatis, which developed optical networking solutions, enabled Lucent to expand its offerings in high-capacity fiber-optic networks, addressing the growing demand for internet bandwidth.
5. Mercury Interactive’s Acquisition by HP – $4.5 Billion (2006)
HP acquired Mercury Interactive, a leader in business technology optimization software, for $4.5 billion in 2006. Founded in 1989, Mercury’s solutions helped enterprises optimize IT infrastructure. The acquisition marked HP’s shift toward enterprise software and services.
6. Galileo Technologies’ Acquisition by Marvell – $2.7 Billion (2001)
Marvell acquired Galileo Technologies for $2.7 billion in 2001, gaining access to semiconductor networking solutions for broadband communications. Galileo’s chip technologies supported networking, storage, and telecommunications infrastructure, propelling Marvell into the communication semiconductors market.
7. Habana Labs’ Acquisition by Intel – $2 Billion (2019)
Intel acquired Habana Labs, a chipmaker specializing in AI and machine learning workloads, for $2 billion in 2019. Founded in 2016, Habana’s processors offered significant performance advantages, reflecting Intel’s strategy to compete with Nvidia and AMD in AI hardware. However, Intel later struggled to capitalize on the acquisition, casting doubt on Habana’s long-term roadmap.
8. Own (formerly OwnBackup) Acquisition by Salesforce – $1.9 Billion (2024)
In 2024, Salesforce acquired Own, a data protection and management company, for $1.9 billion. Founded in 2015, OwnBackup provided solutions for disaster recovery and data protection. The acquisition strengthened Salesforce’s position in the cloud computing and enterprise software markets, emphasizing Israel’s role in global data management innovation
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9. M-Systems’ Acquisition by SanDisk – $1.6 Billion (2006)
SanDisk acquired M-Systems, a pioneer in flash memory products, for $1.6 billion in 2006. Founded in 1989, M-Systems was instrumental in developing portable data storage solutions such as USB flash drives. The acquisition solidified SanDisk’s leadership in the flash memory market.
10. WalkMe’s Acquisition by SAP – $1.5 Billion (2024)
Enterprise software giant SAP acquired WalkMe, a digital adoption platform, for $1.5 billion in June 2024. Founded in 2011, WalkMe went public in 2021 with a $2.5 billion valuation. SAP’s acquisition represented a 45% premium on WalkMe’s market value and marked the company’s 12th Israeli acquisition.
Conclusion
These ten M&A deals highlight Israel’s unique ability to produce innovative companies that shape global industries. Whether through advancements in AI, networking, or autonomous driving, Israeli startups have consistently captured the interest and investment of the world’s top technology players, further establishing the country’s reputation as a global tech hub.
In the course of my work on a different project, I came upon this photo:
