Hedge fund tycoon and GB News shareholder Sir Paul Marshall is in advanced talks to purchase The Spectator, one of Britain’s most influential political media titles. According to sources familiar with the matter, Sir Paul’s Old Queen Street Ventures is the leading contender to acquire the magazine, which has been part of an auction process that also includes the Daily and Sunday Telegraph newspapers.
The City financier’s potential deal to buy The Spectator could be finalized as early as this month. However, it would not necessarily rule him out of the Telegraph sale, although there have been doubts in recent weeks about his participation in the newspaper auction.
The media assets have been in question since the collapse of a deal that would have seen Abu Dhabi-backed RedBird IMI take control of them. The government intervened to block ownership of national newspapers by funds from overseas governments, leading to the ongoing auction process.
Other interested parties, including Rupert Murdoch, have expressed interest in acquiring The Spectator ahead of a deadline set by RedBird IMI’s advisers last month. However, a deal between Sir Paul and RedBird IMI has yet to be signed and could still fall apart, according to a person close to the process.
The potential deal would value The Spectator, which earns a seven-figure annual profit, between £50m and £100m. Edited by Fraser Nelson, the magazine is closely followed by Westminster politicians and its annual summer party is attended by top government and opposition figures. Veteran broadcaster and journalist Andrew Neil serves as the chairman of The Spectator.
Sir Paul has been linked to the Telegraph and Spectator titles since their respective parent companies were placed into insolvency proceedings by Lloyds Banking Group over a year ago. He is a major shareholder in GB News’ parent company but stepped down from its board earlier this year. Sir Paul recently changed the name of his venture capital firm to Old Queen Street Ventures to allow for bidding on multiple media titles without creating confusion with his other company, UnHerd.
In 2020, RedBird IMI paid £600m for a call option that would have converted into ownership of the Telegraph and Spectator. However, the ongoing auction process has raised doubts about the Abu Dhabi-backed vehicle’s ability to recoup that sum from the sale of these assets. Other bidders still in contention for the newspapers include Lord Saatchi, National World, and Mediahuis.
Last month, it was revealed that former chancellor Nadhim Zahawi was approaching billionaire backers for a bid for the Telegraph. Mr. Zahawi played a key role last year as an intermediary between the former owners of the Telegraph, the Barclay family, and RedBird IMI. He recently joined Very Group, the family’s online retailer and financial services provider, as chairman. If RedBird IMI had been allowed to convert its call option into ownership of the titles, Mr. Zahawi was expected to chair the newspaper group.
The Times reported that the publisher of the Daily Mail withdrew from the auction due to the risk of a competition inquiry. Sir Paul had reportedly secured financing from American hedge fund founder Ken Griffin for a Telegraph bid, but it is unclear if Mr. Griffin will also be involved in financing a deal for The Spectator.
Earlier this year, it was revealed that Raine Group and Robey Warshaw had been hired to advise on the next phase of the Telegraph’s ownership. A person close to the newspaper said its commercial prospects were strong, as evidenced by its recent financial statements.
Both RedBird IMI and Sir Paul declined to comment on the potential deal.
