The announcement sparked an uproar in British media circles and the U.K. Government quickly opened a formal probe into the sale on public-interest grounds. File
| Photo Credit: Reuters

The U.K. announced on March 13 that it plans to bar overseas governments from owning British newspapers, a move that could scupper the contentious Abu Dhabi-led takeover of the Telegraph Media Group.

Stephen Parkinson, a Media Minister, announced in the upper-chamber House of Lords that the Conservative government would amend proposed legislation so that it “prevents foreign state ownership of newspapers”.

A government spokesperson added that the move would “deliver additional protections for a free press, a pillar of our democracy”.

It follows pressure over the proposed takeover of the Daily Telegraph newspaper and Spectator magazine by a joint venture 75% owned by Sheikh Mansour bin Zayed Al Nahyan, vice president and deputy prime minister of the United Arab Emirates.
RedBird IMI, a joint venture between U.S. firm RedBird Capital and Abu Dhabi’s International Media Investments, struck a £1.2 billion ($1.5 billion) deal with TMG’s owners, the Barclay family, in November.

The agreement saw RedBird IMI pay off bank debts in exchange for control of the media group.

The announcement sparked an uproar in British media circles and the U.K. Government quickly opened a formal probe into the sale on public-interest grounds.

The takeover plans have also raised concerns among some lawmakers in the ruling Conservative party, which has long enjoyed a close ideological relationship with the right-leaning Telegraph titles.

The Spectator — once edited by former Tory prime minister and Brexit figurehead Boris Johnson — is widely considered the “Tory bible”.

Its chair Andrew Neil told Sky News the announcement was “a move in the right direction” but said the government came “late to the party”, as he had long called for such legislation.

The takeover plans have also led to consternation among Telegraph staff, who have repeatedly spoken out against it, and press freedom activists who denounce the U.A.E.’s record on press censorship.

Minority interests?

The government spokesperson hinted that the changes were sparked by the proposed takeover of the Telegraph titles.

“We have listened carefully to the arguments made by parliamentarians in recent weeks, and are taking action to explicitly rule out foreign state ownership, influence or control of newspapers and periodical news magazines,” the spokesperson said.

The amendment is set to be added for next week’s scheduled third and final reading of the Digital Markets, Competition and Consumers Bill, meaning they could come into force soon.

“We intend that the changes should take immediate effect upon royal assent,” said Mr. Parkinson, confirming that the ban would not apply to broadcasters.

RedBird IMI is majority-owned by Sheikh Mansour, who is also owner of Manchester City football club.

RedBird IMI is run by former CNN president Jeff Zucker, who has said that Mansour would be a “passive investor” and that the takeover was “American-led”.

British media suggested that minority interests in newspapers and magazines by foreign governments might be allowed, leaving the door open for a restructured bid by RedBird that reduces the U.A.E.’s stake.

United Arab Emirates Vice President Sheikh Mansour bin Zayed Al Nahyan. Mr. Sheikh Mansour has been a prominent figure in Britain since his 2008 takeover of soccer club Manchester City. File photo
| Photo Credit: Reuters

The United Kingdom government said on Wednesday, March 13, 2024, it will back legislation banning foreign state ownership of British newspapers and magazines, a move that could upend a planned takeover by a United Arab Emirates-led consortium of the Telegraph Media Group.

The development comes after numerous lawmakers from across the political divide urged an explicit ban, rather than using a regulatory approach to ensure that publications don’t parrot views of state actors.

The Minister in charge of media, Stephen Parkinson, said the government will introduce an amendment to the “Digital Markets, Competition and Consumers Bill” currently making its way through Parliament.

The bill, which is expected to pass easily, will prevent the takeover of British publications by foreign governments. However, foreign individuals and firms will continue to be able to own papers and magazines.

“Freedom of the press is fundamental to a functioning democracy,” said Mr. Parkinson. “What freedom of the press means is freedom from government.”

The legislation stems from concern about the proposed takeover of the right-leaning and publications by RedBird IMI, which is backed by U.S. financial firm RedBird Capital Partners and Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s royal family, who is also the UAE’s vice president.

Sheikh Mansour has been a prominent figure in Britain since his 2008 takeover of soccer club Manchester City. His wealth has transformed the fortunes of City, taking the club from an also-ran in the English Premier League to a dominant force.

The proposed takeover of the Telegraph Media Group — The Daily Telegraph, The Sunday Telegraph as well as The Spectator magazine — has also been subject to a separate investigation, ordered by the Culture Secretary Lucy Frazer, due to its possible impact on press freedom. The Telegraph papers are closely allied to the governing Conservative Party.

The takeover has been opposed by Spectator’s editor Fraser Nelson, who welcomed the government’s decision to introduce the ban.

‘Press freedom compromised’

“If governments start to own newspapers, whether they’re British governments, European governments or an Arab government, you end up with press freedom compromised fatally,” he told Sky News.

“In journalism, one of the maxims is follow the money and if that money leads to the Abu Dhabi government, then you’ve got a pretty big problem when it comes to press freedom,” Mr. Nelson added.

In a statement, RedBird IMI, which has made six investments in the U.S. and the U.K., said the company was “extremely disappointed” by the government’s decision as it believed the U.K.’s media industry was worthy of more investment.

“As with each of our deals, we have been clear that the acquisition of The Telegraph and The Spectator has been a fully commercial undertaking,” it said. “We will now evaluate our next steps, with commercial interests continuing to be the sole priority.”