Abu Dhabi-backed fund withdraws from deal to acquire British newspaper group Telegraph

LONDON – British newspaper group Telegraph was back up for sale on Tuesday after a takeover bid from a UAE-backed consortium failed.

Abu Dhabi-backed investment fund RedBird IMI said it was dropping its proposed takeover of Telegraph Media Group, owner of the right-wing Daily Telegraph and Sunday Telegraph newspapers and The Spectator magazine.

“We continue to believe that this approach would have more widely benefited Telegraph and Spectator readers, their journalists and the UK media landscape,” the trust said in a statement.

The proposed deal faced opposition from the British government, which expressed concerns about the impact on freedom of expression and the accurate presentation of news. Last month, the government said it planned to introduce legislation that would block foreign state ownership of British newspapers and magazines.

Authorities also launched an investigation into the proposed deal’s potential impact on freedom of expression. Ofcom, the media watchdog, raised concerns that the proposed takeover could influence “the accurate presentation of news and the free expression of opinion” in publications.

Telegraph newspapers are closely allied with the ruling Conservative Party.

RedBird IMI is backed by US financial firm RedBird Capital Partners and Sheikh Mansour bin Zayed Al Nahyan, member of the Abu Dhabi royal family and vice president of the United Arab Emirates. It is run by former CNN chief Jeff Zucker.

The fund reached an agreement last year with the Barclay family, the former owners of the media group, to provide them with loans and guarantee that the family’s debts, worth around £1 billion (1.25 billion of dollars), are paid.

The Barclay family owned the influential newspaper and magazine before the publications were placed into receivership. The family also owned the luxury Ritz Hotel in London before selling it in 2020.