The move comes after the UK said it would introduce legislation to block such state-backed takeover deals in the media.
An Abu Dhabi-backed group that plans to acquire Britain’s Telegraph Media Group (TMG) said it will withdraw after the UK government took steps to block the deal.
RedBird IMI, a joint venture between US firm RedBird Capital and Abu Dhabi’s International Media Investments, has reached a £1.2 billion ($1.5 billion) deal with TMG’s previous owners, Barclay family in November.
The deal, which faced opposition due to its potential impact on freedom of expression given Abu Dhabi’s press freedom record, saw RedBird IMI pay off bank debts in exchange for control of the media group.
However, last month the UK government said it would introduce legislation to block such state-backed takeover deals in the industry, while Culture Secretary Lucy Frazer also considered a full regulatory investigation.
Regulatory obstacles appear to have led RedBird IMI to now abandon the effort to own and control TMG, which also includes The Spectator magazine.
“RedBird IMI has today confirmed that it intends to withdraw from the proposed acquisition of Telegraph Media Group and proceed with the sale,” it said in a statement on Tuesday.
“We continue to believe that this approach would have benefited the readers of the Telegraph and Spectator, their journalists and the UK media landscape more broadly.
“Regrettably, it is clear that this approach is no longer viable.”
RedBird IMI said it now plans to bring security to the publications’ employees and readers by seeking new owners for the titles.
It said the titles “remain highly attractive” to potential suitors, with speculation that they could be sold separately or as a package.
‘Cornerstone’
Frazer said he acted to “ensure media freedom was protected whilst there was an investigation into these concerns”.
“I will now allow the parties to conduct an orderly transition and will monitor the outcome with a view to taking any additional regulatory measures as necessary,” he added.
“A free press is a cornerstone of our democracy and we cannot take it for granted.”
Frazer noted that the government will continue to intervene “when necessary to protect the integrity and independence of these publications, given the unique role they play in our democracy.”
RedBird IMI’s original ownership plans sparked an uproar in some circles of the British media, including among some lawmakers in the ruling Conservative Party.
It has long enjoyed a close ideological relationship with the Telegraph’s right-wing titles.
The Spectator – once edited by former Conservative prime minister and Brexit figurehead Boris Johnson – is widely considered the “Tory bible”.
Redbird IMI is majority owned by Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE and owner of Manchester City Football Club. It is run by former CNN president Jeff Zucker.
This story originally appeared on Aljazeera.com read the full story
