The Abu Dhabi-backed consortium, RedBird IMI, bidding for the Daily and Sunday Telegraph has promised that journalists will have complete editorial freedom under their ownership, with legally binding agreements in place to ensure this. Jeff Zucker, who is leading the bid, confirmed in an interview with the BBC that the group was prepared to set up an independent editorial trust board, stating that RedBird IMI would be responsible for the titles but that the UAE would not try to influence editorial decisions. He added, “I think that taken collectively, there’s no UK newspaper that has stronger protections of editorial independence.” RedBird IMI is financing 75% of the deal, with the remainder coming from US firm RedBird Capital.
The papers were put up for sale last year when they were seized by Lloyds Banking Group from long-time owners, the Barclay family, who had failed to pay back a loan of more than £1bn. Following an auction process, the Barclay family paid off their debt with money lent by Abu Dhabi’s Sheikh Mansour bin Zayed al-Nahyan, who then agreed to transfer the Telegraph and sister publication, the Spectator, to the RedBird IMI consortium. At this point, the UK government issued a Public Interest Intervention Notice, which has been assumed to be connected to fears that the papers might come under the control of an authoritarian foreign state.
Several conservative MPs and politicians had expressed their concern at the proposed takeover. Tory MP David Davis had stated, “The UAE is an authoritarian regime with a pretty dismal human-rights record. Its leaders are not fit to preside over our media.” One proposal to dilute the Abu Dhabi shareholding by introducing additional investors was rejected by RedBird IMI. The transfer of ownership is by no means certain, and the government may refer the deal to the Competition and Markets Authority, a process that could take several months.
Gulf states have made major investments in the UK in recent years, with UAE-based investors funding projects including ports, housing, windfarms and science parks. The Conservative government is keen to maintain such investment, and a decision on the Telegraph deal will be taken by Culture and Media Secretary, Lucy Frazer, possibly next month
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