Source: AFP
An Abu Dhabi-backed group planning to take over Britain’s Telegraph Media Group (TMG) said on Tuesday it would pull out and sell the business after the British government moved to block the deal.
RedBird IMI, a joint venture between US firm RedBird Capital and Abu Dhabi’s International Media Investments, closed a 1.2 billion pound ($1.5 billion) deal with TMG’s previous owners, the Barclay family, in November.
The deal, which has faced backlash over its potential impact on free speech given Abu Dhabi’s censorship of the press, saw RedBird IMI repay bank debts in exchange for control of the media group.
But last month the UK government said it would bring forward legislation to block such state-backed takeover deals in the industry, while Culture Secretary Lucy Frazer also considered a full regulator investigation.
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Regulatory hurdles appear to have prompted RedBird IMI to now abandon its bid to own and control TMG, which also includes The Spectator magazine.
“RedBird IMI has today confirmed that it intends to withdraw from the proposed acquisition of Telegraph Media Group and proceed with a sale,” it said in a statement.
“We continue to believe that this approach would have benefited Telegraph and Spectator readers, their journalists and the wider UK media landscape.
“Unfortunately, it is clear that this approach is no longer feasible.”
RedBird IMI said it now plans to bring certainty to the publications’ employees and readers by seeking new owners for the titles.
He added that they “remain extremely attractive” to potential suitors, with speculation that they could be sold separately or as a package.
‘Cornerstone’
Fraser, who is due to make a lunchtime statement to parliament on the matter, said she acted to “ensure media freedom is protected while these concerns are investigated”.
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“I will now allow the parties to make a smooth transition and will monitor the outcome with a view to taking any further regulatory action as necessary,” he added.
“A free press is the cornerstone of our democracy and we cannot take it for granted.”
Fraser noted that the government would continue to intervene “where necessary to protect the integrity and independence of these publications, given the unique role they play in our democracy”.
RedBird IMI’s initial ownership plans caused an uproar in British media circles, including some ruling Conservative lawmakers.
It has long had a close ideological relationship with the right-wing Telegraph titles.
The Spectator — once edited by former Tory prime minister and Brexit chief Boris Johnson — is widely regarded as the “Tory bible”.
The plans have also caused concern among Telegraph staff, who have repeatedly spoken out against it, and press freedom campaigners.
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Redbird IMI is majority owned by Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE and owner of Manchester City Football Club.
It is run by former CNN president Jeff Zucker.
Zucker had said Mansour would be a “passive investor” and said the acquisition was “American-led.”
Source: AFP