The issue has been ongoing for a little while, with Netanyahu both demanding a large number of designated slots into which he can personally choose someone for that slot, and also Netanyahu seemingly thinking that certain MKs who would benefit from the primaries and get into realistic slots might harm the Likud list in the upcoming national elections and cost the Likud some seats. That concern is based on advanced polling Netanyahu relies on.

In the end I think this is just posturing and Netanyahu won't go ahead with this. He will use this for some sort of compromise, perhaps to get more "shiryunim", reserved slots, than what others are willing to give but fewer than what he is demanding, or maybe something else. I just cannot see him canceling the primaries.

The Likud, and Netanyahu, has always been very proud of the primaries and uses them to attack many of the other parties. the Likud is one of just a few parties that hold real primaries to choose its candidates, and they regularly claim they are the only democratic party that holds primaruies while other parties have their candidates selected by the chairman or a committee. I have a hard time believing they are really going to give that up and make the Likud just like most of the other parties in that regard. I can see the attacks on the Likud for this if it happens, King Bibi canceling primaries and selecting the candidates that work for him. I don't think he will give anyone that opportunity.

And perhaps a bigger reason is that if there are no primaries, why should anyone be a member of the Likud? If they were to cancel the primaries I would assume there would be mass cancelations of membership, which would be a big financial hit to the Likud.