Abu Dhabi-backed group ends Telegraph takeover bid
Abu Dhabi-backed group ends Telegraph takeover bid
An Abu Dhabi-backed group planning to take over Britain’s Telegraph Media Group (TMG) said on Tuesday it will withdraw and sell on the business after the UK government moved to block the deal.
RedBird IMI, a joint venture between US firm RedBird Capital and Abu Dhabi’s International Media Investments, struck a £1.2 billion deal with TMG’s previous owners, the Barclay family, in November.
The agreement, which has faced opposition over its potential impact on freedom of speech given Abu Dhabi’s press censorship record, saw RedBird IMI pay off bank debts in exchange for control of the media group.
Block state-backed takeover deals
However, last month the UK government said it would bring forward legislation that would block such state-backed takeover deals in the industry, while ministers also mulled a full regulator probe.
The regulatory hurdles appear to have prompted RedBird to now abandon the endeavour to own and control TMG, which also includes The Spectator magazine.
“RedBird IMI has today confirmed that it intends to withdraw from its proposed acquisition of the Telegraph Media Group and proceed with a sale,” the Abu Dhabi-backed group said in a statement.
“We continue to believe this approach would have benefited the Telegraph and Spectator’s readers, their journalists and the UK media landscape more widely.
“Regrettably, it is clear this approach is no longer feasible.”
RedBird IMI said it now plans to bring certainty to employees and readers of the publications by seeking new owners for the titles.
‘Tory bible’
RedBird IMI said they “remain highly attractive” to potential suitors, with speculation they could be sold separately or as a package.
Its original ownership plans has sparked an uproar in British media circles, including among some lawmakers in the ruling Conservative party.
It has long enjoyed a close ideological relationship with the right-leaning Telegraph titles.
The Spectator – once edited by former Tory prime minister and Brexit figurehead Boris Johnson – is widely considered the “Tory bible”.
The plans had also led to consternation among Telegraph staff, who have repeatedly spoken out against it, and press freedom activists.
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By Garrin Lambley © Agence France-Presse