The Telegraph Group is back up for sale as RedBird IMI withdraws, citing new legislation, prompting renewed auction amid UK media ownership concerns. Here’s the full story.
£600 Million
The proposed £600 million takeover of the Telegraph group by the United Arab Emirates (UAE) backed consortium RedBird IMI has come to a shuddering, if not entirely unexpected, halt.
UAE Vice-President
RedBird IMI is backed by Sheikh Mansour bin Zayed al-Nahyan, owner of Manchester City Football Club and vice-president and deputy prime minister of the UAE, and RedBird Capital Partners.
New Legislation
The consortium cited rapidly introduced new legislation by the UK government as the primary reason for withdrawing from the deal, which has seen the struggling newspaper group return to the market.
Blocking Foreign States
The proposed legislation, introduced shortly after the deal was announced, will block foreign states or other associated individuals from owning newspaper assets in the UK.
Conservative Backlash
The collapse of the bid began following a Conservative backlash against the takeover of the Telegraph group, widely considered one of the party’s strongest media supporters, from several Conservative MPs and ministers, who expressed concerns over potential threats to free speech.
Press Freedom
The UAE has been roundly criticised for its distinct lack of press freedom, where journalists and others that the country’s rulers see as critical of the government are routinely arrested and given long prison terms.
Shifting Stance
Many have attributed the Conservative government’s plans to worry that what is regularly considered the Tory Party’s in-house newspaper, The Telegraph, may shift its editorial stance following a takeover from a foreign power, as opposed to faux concerns over free speech.
Erosion of Rights
This is particularly noteworthy considering the UK government’s distinct lack of concern over its ongoing erosion of the right to protest or to claim asylum, which has been condemned in a scathing review of the country’s policies published by Amnesty International.
Hand-Wringing
Despite the Conservative hand-wringing at the prospect of the deal, it has now collapsed, and RedBird IMI has expressed disappointment over its downfall.
“Strongest Editorial Protections”
A spokesperson for the consortium stated, “Our ownership would have seen the strongest editorial protections ever put forward for a UK newspaper, along with much-needed investment. We continue to believe this approach would have benefited the Telegraph and Spectator’s readers, their journalists and the UK media landscape more widely.”
“No Longer Feasible”
They continued, “Regrettably, it is clear this approach is no longer feasible. Our focus now is on providing certainty to the employees and readers of the Telegraph and the Spectator, and securing best value for the assets, which remain highly attractive.”
Lifting Regulatory Order
Culture Secretary Lucy Frazer lifted a regulatory order that had previously put the RedBird IMI deal on hold, allowing the sale to proceed.
Back on the Market
With the deal’s collapse, the Telegraph group is now back on the market, with several prominent right-wing media figures reportedly interested in taking over the struggling newspaper company.
Rupert Murdoch’s News UK
Potential bidders include Daily Mail and General Trust, hedge fund founder Paul Marshall, and Rupert Murdoch’s News UK, which has shown interest in acquiring the Spectator magazine.
£1 Billion Loan
The Barclay family, who owned the Telegraph group, lost the titles to Lloyds Banking Group following the family’s failure to pay back a £1 billion loan.
Buy Out
The family could pay off the debt following a loan from Sheikh Mansour bin Zayed al-Nahyan, which was given in exchange for the consortium gaining control of the newspaper company.
Significant Debt
While the Barclay family remains shareholders in the titles, they are not involved in their management. RedBird IMI also holds significant debt in the Telegraph and Spectator, further complicating the sale process.
“Raised Concerns”
Lucy Frazer, the Culture Secretary overseeing the proposal, stated, “The parties have signalled their intention to withdraw from the deal. Throughout this process I have raised concerns about the potential impact of this deal on free expression and accurate presentation of news, and I took steps to ensure that media freedom was protected while there was an investigation into those concerns.”
“Orderly Transition”
She continued, “I will now allow the parties to conduct an orderly transition and I will monitor the outcome with a view to taking any further regulatory action as required under the Enterprise Act.”
Complex and Opaque
The collapse of the RedBird IMI takeover of the Telegraph group gives an intriguing insight into the complex and opaque world in which much of the UK’s right-wing media ecosystem operates.
Wealthy Individuals
Many of the UK’s biggest newspapers are owned by wealthy individuals, and some, such as Rupert Murdoch, are foreign nationals. It is interesting that the government has drawn a line at newspapers owned by wealthy foreign states.
Press Freedom
What this might mean for freedom of the press in the UK in the future remains to be seen.
25 Things You CAN’T Talk About Anymore
Remember the days when you could freely discuss just about anything without fear of sparking controversy? Well, those days are long gone. In today’s hyper-sensitive world, there are topics so fraught with tension that even mentioning them can lead to heated debates and hurt feelings. 25 Things You CAN’T Talk About Anymore
Stranded: 15 Worst British Cars in History
Ever had a car that spent more time with the mechanic than on the road? A car that turned every journey into a game of “Will we actually get there?” If so, you might just see a familiar face (or should we say, chassis) in our countdown to the most unreliable British car in history. Stranded: 15 Worst British Cars in History
“Britain Will Become Unrecognizable” – Suella Braverman Spells Disaster for UK Amid Steep Rise in Visas Issued
Former Home Secretary Suella Braverman has warned that Britain will become “unrecognizable,” criticizing the amount of work visas the Home Office has approved, despite only being removed from her role in November. “Britain Will Become Unrecognizable” – Suella Braverman Spells Disaster for UK Amid Steep Rise in Visas Issued
20 Things From the ‘70s That Are Not OK Today
Step into the time machine and set the dial to the 1970s, a decade of disco, bell-bottoms, and some rather questionable choices. While the ’70s gave us iconic music and groundbreaking TV, not everything from this groovy era would get a green light today. 20 Things From the ‘70s That Are Not OK Today
20 Best and Worst Universities in the UK
Navigating the UK university landscape is like deciphering a complex code of rankings, reviews, and reputations to uncover where you’ll not just learn, but truly flourish. Whether you’re drawn to the historic halls of Oxford or the creative buzz of Goldsmiths, finding your perfect fit is about aligning your aspirations with the unique offerings of each institution. 20 Best and Worst Universities in the UK
The post Arab Takeover of Telegraph Media Group Comes to Abrupt Halt first appeared on Edge Media.
Featured Image Credit: Shutterstock / Hadrian.
Grant Gallacher is a seasoned writer with expertise in politics and impactful daily news. His work, deeply rooted in addressing issues that resonate with a wide audience, showcases an unwavering commitment to bringing forth the stories that matter. He is also known for satirical writing and stand up comedy.