UK is going to ban foreign state ownership of newspapers, Telegraph Takeover in Doubt
In a move to bolster press freedom, the UK government has announced a ban on foreign government ownership of British newspapers and news magazines. This decision comes after public outcry surrounding a potential takeover of prominent publications like The Daily Telegraph and Spectator by RedBird IMI, an investment firm backed by the United Arab Emirates. The government maintains that the new legislation will provide “additional protections for a free press.”
Unsurprisingly, the UAE-funded group expressed their disappointment with the development. Opposition party Labour has signaled support for the amendment, which will be incorporated into a new law currently under debate. This action follows mounting pressure from across the political spectrum on the government to address foreign influence in media ownership.
The potential for a parliamentary defeat in the House of Lords on Wednesday, where peers advocated for immediate action, likely influenced the government’s decision. Lord Parkinson of Whitley Bay, while announcing the ban, clarified that the new law will “rule out newspaper and periodical news magazine mergers involving ownership, influence or control by foreign states.”
To prevent foreign state ownership of British media outlets, the government will introduce an amendment during the upcoming third reading of the Digital Markets, Competition and Consumers Bill next week, according to Lord Parkinson. This amendment would effectively block such acquisitions. Notably, Lord Parkinson clarified that the ban would solely target newspapers and magazines, and wouldn’t extend to broadcasters. This announcement coincides with RedBird IMI’s ongoing effort to acquire The Daily Telegraph, Sunday Telegraph, and The Spectator magazine. The investment fund, backed by Sheikh Mansour, deputy prime minister of the UAE and owner of Manchester City Football Club, recently cleared the previous owner’s debts, paving the way for a potential takeover.
The UK government’s new law banning foreign state ownership of newspapers and magazines could directly impact the proposed takeover of the Telegraph Media Group by RedBird IMI, an investment firm with ties to the United Arab Emirates (UAE).
Lord Parkinson, a government minister, suggested the new law, if passed quickly, could apply to the Telegraph Media Group acquisition.
BBC’s Business Editor reports that the RedBird IMI deal is likely to fail due to mounting political opposition.
While “committed” to investing in global media, the firm will “evaluate next steps” after the government’s intervention. They maintained their investment in the Telegraph and Spectator was purely commercial.
The acquisition process for the Telegraph titles may continue, with other contenders including Sir Paul Marshall (GB News owner), DMGT (Daily Mail owners), and Rupert Murdoch’s News UK.
The chairman of the Spectator, Andrew Neil, who previously criticized the RedBird IMI deal, believes the government’s move effectively kills the UAE’s takeover attempt.
