LONDON: Britain’s govt outlined plans on Wednesday to stop foreign states from owning newspapers, potentially giving ministers the power to block Abu Dhabi-backed RedBird IMI‘s bid to buy Telegraph. The battle over one of Britain’s most famous newspapers has raised questions about the independence of the media and the role of foreign investors acquiring ownership of politically influential assets.
Telegraph has close connections with Britain’s governing Conservative Party and the political struggle for ownership of the 168-year-old newspaper is as much about power and influence as it is about money. Stephen Parkinson, the culture minister in the House of Lords, said the govt would make changes through an amendment to legislation going through parliament to prevent foreign states from having ownership of UK newspapers.
The proposed changes to the law would in effect block the Telegraph takeover bid by RedBird IMI as currently structured, one govt official said. The group also planned to buy the Spectator news magazine. RedBird IMI, run by former CNN boss Jeff Zucker and with the majority of its funding from Abu Dhabi, said it was extremely disappointed and would now evaluate its next steps.
The deal is already under a separate investigation based on existing laws, but the new plan is more explicitly targeted at preventing foreign state control.
The contest for ownership of the Telegraph is playing out against the backdrop of an unpopular Conservative Party, led by PM Rishi Sunak, that is set to lose the next election expected later this year, according to polls.
The ban is likely to be put to a vote in House of Lords in the next few weeks.
Telegraph has close connections with Britain’s governing Conservative Party and the political struggle for ownership of the 168-year-old newspaper is as much about power and influence as it is about money. Stephen Parkinson, the culture minister in the House of Lords, said the govt would make changes through an amendment to legislation going through parliament to prevent foreign states from having ownership of UK newspapers.
The proposed changes to the law would in effect block the Telegraph takeover bid by RedBird IMI as currently structured, one govt official said. The group also planned to buy the Spectator news magazine. RedBird IMI, run by former CNN boss Jeff Zucker and with the majority of its funding from Abu Dhabi, said it was extremely disappointed and would now evaluate its next steps.
The deal is already under a separate investigation based on existing laws, but the new plan is more explicitly targeted at preventing foreign state control.
The contest for ownership of the Telegraph is playing out against the backdrop of an unpopular Conservative Party, led by PM Rishi Sunak, that is set to lose the next election expected later this year, according to polls.
The ban is likely to be put to a vote in House of Lords in the next few weeks.