UK: Telegraph Back Up for Sale After Government Blocks UAE-Backed Takeover
The Facts
The British government on Tuesday gave the green light for the re-sale of the Daily Telegraph, the Sunday Telegraph and the Spectator Magazine after blocking an acquisition of the titles by an investment firm with ties to the royal family of the United Arab Emirates.
RedBird IMI — a partnership between Sheikh Mansour bin Zayed al-Nahyan, the UAE’s vice-president, and the US investment firm RedBird Capital Partners — effectively took ownership of the Telegraph titles in December after settling a £600M ($749M) debt by the previous owners in return for the acquisition.
The Spin
The proposed RedBird IMI acquisition of the Telegraph titles forced the British government and public to think about how much of its national infrastructure — including its newspapers — should be in the hands of foreign governments. On reflection, it was decided that having one the country's biggest titles under the control of a dictatorship, which has its own press freedom concerns, isn't the best idea.
While there are legitimate press freedom concerns about a UAE-backed investment fund owning a major British newspaper title, most of the discussion reeks of self-interest and hypocrisy. The UAE backers are in large part more respectable than other newspaper owners in the UK and their deep pockets would likely make the Telegraph titles thrive again. This would make it a competitor and this is why it's being opposed by many.
