Government to block UAE bid for Telegraph with foreign ownership ban

13th Mar 2024 16:59

(Sharecast News) - The government is set to announce a ban on foreign governments owning newspapers and magazines in the UK, it emerged on Wednesday, effectively halting the Abu Dhabi-led takeover bid of the Daily and Sunday Telegraph.

According to Sky News, the commitment would prohibit any foreign state ownership, influence, or control over newspapers and news magazines operating within the country.

The announcement was expected to be made during a session in the House of Lords as an amendment to the Digital Markets Act, which was currently undergoing parliamentary scrutiny.

It was described as a direct response to the proposed acquisition of the Telegraph titles, along with the Spectator magazine, by Redbird-IMI, a joint venture primarily owned by Sheikh Mansour, vice president of the United Arab Emirates.

The Telegraph's fate had been under intense scrutiny following Redbird-IMI's approach, which circumvented a traditional auction process by settling debts owed to Lloyds Bank, gaining control of the newspapers previously held by the Barclay family.

Culture secretary Lucy Frazer had referred the proposed takeover to regulatory bodies, citing public interest concerns, placing it on hold and leaving the Telegraph's ownership in a state of uncertainty.

Redbird-IMI, led by former CNN executive Jeff Zucker, maintained that Sheikh Mansour's investment was personal, pledging an independent editorial structure to safeguard against undue influence on content.

Reporting by Josh White for Sharecast.com.