Media regulator Ofcom has found that the failed takeover of the Telegraph by a UAE-backed consortium would have risked undermining “free expression” in the press.
The findings of reports by Ofcom and the Competition and Markets Authority (CMA) were published on Friday, following a two-and-a-half-year wait for their release. The reports highlighted concerns over the potential ownership of the Telegraph Media Group by RedBird IMI, due to its close links with the United Arab Emirates.
Concerns over free expression and accurate news
In the published reports, Ofcom concluded that the takeover deal may “operate against the public interest” in relation to “free expression of opinion in newspapers”. The report, which contains a number of redactions, also raised concerns over whether the deal could sufficiently meet the “need for accurate presentation of news in newspapers”.
RedBird IMI is majority-owned by Abu Dhabi’s International Media Investments (IMI), an investment fund owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the UAE and owner of Manchester City Football Club.
IMI rejects Ofcom’s findings
However, IMI said it “completely rejects” Ofcom’s report, suggesting that Ofcom “failed” to assess IMI as a commercial media company. An IMI spokesman said: “International Media Investments (IMI) completely rejects Ofcom’s report: its methodology, its reasoning, and its conclusions, which were reached before the evidence was examined.”
The spokesman added: “Instead of judging the RedBird IMI bid for The Telegraph on the facts, Ofcom based its assessment on an arbitrary and biased set of assumptions, conflating the commercial interests of a private company with the conduct of a sovereign state.”
The publication of the report comes amid a tense diplomatic backdrop between the UK and UAE, after the Manchester City owners were found guilty of breaking Premier League spending rules. Prime Minister Andy Burnham has since faced scrutiny for his ties to the football club’s owners during his role as the mayor of Greater Manchester, with Abu Dhabi funds helping to back regeneration projects in the city.
Takeover abandoned and new owner found
Ultimately, RedBird IMI backed out of its proposed takeover of the Telegraph and the Spectator magazine in 2024 after the Government banned foreign states from owning British newspapers and news magazines. The changes to media ownership rules came after Ofcom and the CMA had written reports to then Culture Secretary Lucy Frazer.
An Ofcom spokesman said: “The purpose of a Phase 1 assessment is to look at whether a potential deal raises public interest concerns that warrant referral to the Competition and Markets Authority, which would then submit advice to Government for a final decision.”
The spokesman added: “In this case, the assessments we carried out were comprehensive, evidence-based and objective. We found that IMI, an investment vehicle owned by Sheikh Mansour, should be considered an extension of the UAE state. Following detailed analysis, we found there was a case for further examination.”
German media giant Axel Springer bought the Telegraph for £575 million earlier this year after it was put back up for auction following a lengthy process to find a new owner.
