Abu Dhabi-Backed Fund Concedes Defeat in Bid to Buy The Daily Telegraph
The Abu Dhabi-backed fund, RedBird IMI, has announced its withdrawal from the proposed acquisition of The Daily Telegraph and The Spectator titles. This decision comes after the government effectively blocked the fund’s ownership through an amendment to the Digital Markets, Competition and Consumers Bill, which will outlaw foreign state ownership of UK newspapers.
RedBird IMI, backed by UAE’s deputy prime minister and owner of Manchester City Football Club, Sheikh Mansour bin Zayed al Nahyan, had reached a deal with previous Telegraph owners, the Barclay family, in December last year. The deal involved paying off debts owed to the family’s bank, Lloyds. However, the move sparked investigations by the Competition and Markets Authority and the media regulator, and ultimately led to the government’s intervention.
In a statement, RedBird IMI confirmed its intention to proceed with a sale of The Telegraph and The Spectator titles. The fund stated that its initial approach would have benefited the readers, journalists, and the UK media landscape, but it is now clear that this approach is no longer feasible.
Earlier this month, Sky News revealed that RedBird IMI had been in talks with Whitehall officials regarding the structure of the potential sale. These discussions included the possibility of selling the Telegraph titles and The Spectator separately. RedBird also confirmed that it will retain control over the auction process and that the potential for a split sale will depend on the bids received.
In addition, RedBird announced that Raine Group and Robey Warshaw have been lined up to advise the fund on the way forward. The Raine Group is well-known for its involvement in recent deals involving Manchester United and Chelsea football clubs.
Possible bidders for the Telegraph Media Group include Lord Rothermere, the proprietor of the Daily Mail, and Sir Paul Marshall, a shareholder in GB News. Both have expressed interest in owning the titles.
Culture Secretary Lucy Frazer commented on RedBird’s decision, saying, “Throughout this process, I have raised concerns about the potential impact of this deal on free expression and accurate presentation of news. I took steps to ensure that media freedom was protected while the investigation into these concerns was ongoing.” She also stated that she will continue to monitor the outcome and take any necessary regulatory action under the Enterprise Act.
Frazer emphasized the importance of a free press in a democracy and the government’s commitment to protecting it. She stated, “That is why we are banning any ownership, influence, or control by foreign states of our newspapers and news magazines. We are acting to ensure that we retain the ability to intervene when necessary to protect the integrity and independence of these publications, given the unique role they play in our democracy.”
