Telegraph Sale Resumes: RedBird IMI Consortium Halts Takeover Amid UK Ban on Foreign Ownership
The Daily and Sunday Telegraph newspapers are back on the market for sale after a planned takeover by the Gulf-backed RedBird IMI consortium collapsed due to new UK legislation banning foreign states from owning UK newspapers.
The legislation was put forward in response to the attempted takeover.
RedBird has halted the takeover and will now seek the best value for the titles, which also include the Spectator magazine, in a sale.
The company has held discussions with the government to ensure a smooth sale.
The Abu-Dhabi-backed takeover of The Telegraph newspaper was primarily funded by Sheikh Mansour bin Zayed bin Sultan al-Nahyan, who is also the owner of Manchester City Football Club and a high-ranking official in the UAE.
However, the deal raised concerns among MPs, journalists, and readers about potential control by a foreign authoritarian state.
In response, the UK government intervened and announced a new law banning foreign governments from owning UK newspapers and news magazines, aiming to protect press freedom.
RedBird's consortium announced on Tuesday that they would not be able to proceed with their takeover of the Telegraph and Spectator newspapers due to new legislation defining them as foreign powers.
The group had promised the strongest editorial protections and necessary investments if the deal went through.
Instead, the independent directors currently running the publications will remain until the sale process is completed.