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 were published on Friday in reports by Ofcom and the Competition and Markets Authority (CMA), following a two-and-a-half year wait for their release. The reports pointed to 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 UAE links
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.
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 collapse and new ownership
RedBird IMI ultimately 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.
In the now 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 has a number of redactions, also raised concerns over how the deal may not sufficiently meet the “need for accurate presentation of news in newspapers”.
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.
