The future of The Telegraph newspaper group remains uncertain as peers in the House of Lords have called for an independent body to take control of the sale process, arguing that the Department for Culture, Media and Sport has mishandled the protracted situation.
Government Under Pressure to Intervene
During questions put to Labour minister Fiona Twycross on Wednesday, peers from across the political spectrum demanded that Culture Secretary Lisa Nandy wrest control of the sale from RedBird IMI, which is majority funded by the United Arab Emirates. The joint venture was forced to restart the sale process after its junior partner, Gerry Cardinale's US-based RedBird Capital Partners, pulled out of a deal to buy the Daily and Sunday Telegraph last Friday.
Liberal Democrats spokesperson Christopher Fox declared that The Telegraph needs an independent "white knight" buyer and argued that those involved in previous attempts to purchase the titles should be excluded from leading the process. He stated that the DCMS had mishandled the situation and suggested either the Cabinet Office or an external adviser with experience in complex media transactions should assume control.
Competition Regulator Proposed as Solution
Conservative peer Michael Forsyth went further, suggesting that the government should turn to the Competition and Markets Authority (CMA) to pursue a "proper auction and have normal order restored." This proposal comes as RedBird IMI has struggled to find a buyer willing to meet its £500 million asking price, with most media analysts valuing the titles at approximately £350 million.
Lady Twycross responded that while the government is "acutely aware" that the prolonged sale has left The Telegraph and its staff "in limbo for too long," the culture department would maintain control of the process. She defended Culture Secretary Nandy's handling of the situation, stating she had "adhered to the letter of the law and diligently carried out her quasi-judicial responsibilities."
Political Complications and Potential Outcomes
The newspaper group has been in limbo for two and a half years since Lloyds Bank put it up for sale after seizing control from the Barclay family over unpaid debts. RedBird IMI took control of the titles in late 2023 but was forced to return them to the market after new legislation banned foreign states from owning UK newspapers.
One potential path forward could see Nandy refer RedBird IMI's bid to the CMA to investigate whether it breaches laws on foreign state ownership, using new powers under the Foreign State Influence regime. If deemed unlawful, the Culture Secretary could order an independent sale at a market-led price, potentially run by the regulator and supervised by the independent directors who have overseen The Telegraph during this extended process.
However, any move to force a sale that results in a significant loss for RedBird IMI would likely anger the UAE, making such action politically unattractive for the government. Becket McGrath of Euclid Law noted that while the government has mechanisms to force a sale, "it would just trigger a lot of bureaucracy and forces a bigger loss on them. It is not tempting for the government."
Meanwhile, IMI, controlled by Abu Dhabi's Sheikh Mansour bin Zayed al-Nahyan, has maintained that while it purchased an "economic interest" in The Telegraph, it has never sought to influence or control the titles.
The collapse of RedBird Capital's bid, which would have included small stakes from the owner of the Daily Mail and billionaire Sir Leonard Blavatnik, opens the possibility for previous interested parties to re-enter the fray. Potential bidders could include GB News investor Sir Paul Marshall, who recently acquired The Spectator for £100 million, and Lord Rothermere's Daily Mail & General Trust, though the latter would likely face regulatory scrutiny over competition concerns given its existing handling of The Telegraph's printing and advertising sales.
