Latest news with #mediaownership
Telegraph
4 days ago
- Business
- Telegraph
Who owns the news? It must not be a group of foreign powers
Who owns the news? Much of the Left has been obsessed with the issue for over a century. They have long railed against press barons and their supposed bias. So it is perhaps surprising that this Labour Government is taking such a lackadaisical approach to foreign states having substantial holdings in British newspapers. The last Conservative government back in December 2023 intervened to put on hold and scrutinise the proposed sale of The Telegraph to a company backed by Sheikh Mansour, the deputy prime minister of the United Arab Emirates. Columnists, including Charles Moore, The Telegraph's former editor, rightly argued that even if there was no actual interference in the newspaper's editorial line, there would be the perception that the paper would no longer be independent. This would fatally undermine the newspaper's standing by throwing away its reputation for fearless reporting, whatever the reality of the situation. The then government listened and last year, in the Digital, Media and Competitions Act, introduced a new regulatory regime to restrict foreign state ownership of newspapers and news magazines. But this Act only set out the broad principle, not the details of how it would be implemented. A total ban would come with its own problems. There would be little risk of editorial interference if, say, the sovereign wealth fund of Norway was a passive investor owning 3pc or 4pc in a UK-listed media company. During the consultations, it was proposed that a 5pc limit may be appropriate to allow for such holdings. Last month the new Government announced that the threshold would not be 5pc, but actually 15pc. I and many of my colleagues in the House of Lords have serious misgivings about this much higher limit, but it is one we can live with. However, there is another aspect of the draft regulations which is unacceptable. The 15pc threshold is not cumulative, it applies to each individual holding. This means that there would be nothing to stop multiple states each owning 15pc of a newspaper. It has been reported that after The Telegraph's proposed takeover by RedBird Capital, Sheikh Mansour intends to retain up to a 15pc stake in the newspaper. With the current proposals there would be nothing to stop, say, Saudi Arabia, Oman and Bahrain from each taking 15pc holdings. A cumulative 60pc of a British newspaper owned by foreign states is a very different proposition. The guarantees against foreign control would have evaporated. Has this potential scenario arisen as a result of an oversight by Lisa Nandy, the Culture Secretary? Alongside 50 of my fellow peers, I have written to Ms Nandy asking for clarification. Signatories include former chancellor Lord Lamont, former trade secretary Lord Lilley, long-time chairman of the 1922 committee Lord Brady, ex-director of public prosecutions Lord Macdonald and the current chairman of Ipso, the independent press regulator, Lord Faulks. Our fears could be easily assuaged by simply amending the proposed regulations to ensure that 15pc is a cap on total foreign ownership. If the move is deliberate, it raises serious questions about this Government's commitment to a free press. The statutory instrument implementing the Government's regulations has now been laid and will shortly come before both Houses of Parliament. If the proposals reach the Lords in their current form, I and many of my colleagues will not be able to support the measure. The Telegraph's ownership has been left in limbo for two years so far. It is time for the new regulatory framework to be put in place that will allow its smooth transfer to new owners. But this must be done in a way that entrenches the traditional freedoms of our press. The issues are much wider than the future of just one newspaper.
Sky News
28-05-2025
- Business
- Sky News
Daily Mail chief to pay £35m for Telegraph stake
The owner of the Daily Mail is to pay more than £30m for a minority stake in rival right-leaning newspaper The Daily Telegraph as the latter's prospective owners assemble a consortium of strategic backers. Sky News has learnt that Lord Rothermere's Daily Mail and General Trust is to fork out just under £35m for a shareholding of about 10% in the Telegraph titles, implying an equity value of roughly £350m. Banking sources said that Goldman Sachs had been enlisted to provide advice to DMGT on the investment. A deal is expected to be struck imminently, according to insiders. RedBird Capital, the US-based investment firm, confirmed last week that it was exercising an option to take majority control of the newspapers, with Abu Dhabi state-backed vehicle IMI expected to acquire the maximum 15% stake permitted under proposed new media ownership rules. The government's decision to set the ownership threshold at 15% follows an intensive lobbying campaign by newspaper industry executives concerned that a permanent outright ban could cut off a vital source of funding to an already-embattled industry. However, it faces continued opposition from parliamentarians. Dovid Efune, owner of The New York Sun, is meanwhile continuing to assemble a rival bid for the Telegraph, having secured backing from Jeremy Hosking, the prominent City investor. RedBird IMI paid £600m in 2023 to acquire a call option that was intended to convert into ownership of the Telegraph newspapers and The Spectator magazine. That objective was thwarted by a change in media ownership laws - which banned any form of foreign state ownership. The Spectator was then sold last year for £100m to Sir Paul Marshall, the hedge fund billionaire, who has installed Lord Gove, the former cabinet minister, as its editor.
Yahoo
25-05-2025
- Business
- Yahoo
‘British bidder' for Telegraph vows to fight on
The leader of a bid to disrupt the £500m sale of The Telegraph to a consortium led by RedBird Capital Partners has vowed to fight 'to the very end'. Dovid Efune, the publisher of The New York Sun website, made an appearance on Sky News on Sunday to insist that his 'British bid for The Telegraph is alive and well, and not going anywhere'. Mr Efune has secured financial backing from the hedge fund manager Jeremy Hosking and Nadhim Zahawi, the former cabinet minister. They are attempting to contrast their Britishness with RedBird, an American private equity firm which is seeking to acquire The Telegraph alongside British minority investors. Mr Efune faces a steep challenge. On Friday RedBird announced an agreement in principle to take majority ownership of The Telegraph from IMI, the UAE's media investment arm. The British-born publisher said: 'What's been announced is an agreement in principle. And if the history of The Telegraph's ownership saga teaches us anything, it's that the ownership of The Telegraph and, frankly, any other crown jewel of British public life, will not be determined by means of a press release. 'The British public will yet have their say via their elected representatives, The Telegraph's staff and The Telegraph's readers will have their say, as will the rest of the British press.' RedBird IMI, a joint venture between RedBird and the UAE, majority funded by the Gulf state, was blocked from taking full control of The Telegraph last year following an outcry over press freedom. Now, RedBird's founder Gerry Cardinale is working to make RedBird the controlling shareholder, with IMI expected to retain a passive stake of up to 15pc. Mr Efune said: 'There are quite a lot of questions surrounding RedBird themselves, obviously – where does their capital come from?' Mr Cardinale, who also controls AC Milan and is set to become a major shareholder in the Hollywood studio Paramount, has said none of the money that RedBird will use to acquire The Telegraph will be drawn from sovereign sources. Mr Efune added: 'I suspect that because of all of these questions that surround it, there will need to be a public interest intervention, likely an in-depth investigation, which means the saga of The Telegraph could take another year to resolve.' Enders Analysis, a media industry research firm, said last week that Mr Cardinale's status as a newcomer to news publishing meant the regulatory process could be smooth and complete by September. The potential involvement of Lord Rothermere, the owner of The Daily Mail, as a minority shareholder alongside RedBird could complicate matters. But it is unclear how in practice Mr Efune hopes to disrupt the sale. IMI has publicly endorsed RedBird's planned takeover of The Telegraph, saying it will 'secure its future and enable it to thrive for years to come'. Mr Efune, who prior to acquiring the defunct New York Sun and reviving it as a subscription website was the publisher of Algemeiner, a Jewish community newspaper, has shown great persistence in his pursuit of The Telegraph, however. He emerged as the winner of an auction back in early October last year, but has struggled since to raise the necessary funds. Even now, by his own account Mr Efune's consortium has only 'the bulk' of the capital, although he has said he remains in talks with potential backers. His 11th-hour appeal for more time has come wrapped in the Union flag. He said: 'At the end of the day, I expect that most Britons would want to see The Telegraph in British hands should there be a choice – and there is a choice, a clear choice, and we are 100pc committed to seeing it through.' The approach won rhetorical support this weekend from Lord Ashcroft, the Conservative donor and publisher. In a post on X he said Mr Efune was 'seeking British investors for an alternative to foreign ownership … I wish him well'. Mr Efune has not said whether he envisages the UAE retaining a stake and has not always been so focused on securing British finance. He initially sought to raise funding from American hedge funds. They all declined to invest in his proposed deal after he was named preferred bidder. In November it was reported that Sir Mohamed Mansour, the Egyptian-born billionaire and former Conservative party treasurer, was in advanced discussions to bankroll the bid. A former minister under the dictatorship of Hosni Mubarak, Sir Mohamed ruled out participating, following questions from The Telegraph. They covered topics including the regulatory scrutiny his political past and business interest might face. Mr Efune then turned to Leon Black, the billionaire former boss of the Wall Street giant Apollo Global Management. Mr Black pulled out of detailed discussions to back the bid after The Telegraph asked questions about potential regulatory scrutiny of his regrettable relationship with the paedophile financier Jeffrey Epstein, and legal problems related to it. These incidents appear to have frustrated Mr Efune, who on Friday complained that the 'turbulent undertaking' of raising finance had faced 'unwanted interference'. One possible tactic for Mr Efune's consortium is a legal challenge against the Government's handling of The Telegraph if and when it decides to approve the RedBird takeover. Mr Hosking is said by those who have worked directly with him to have an unusually strong appetite for litigation. Sign in to access your portfolio
Telegraph
25-05-2025
- Business
- Telegraph
‘British bidder' for Telegraph vows to fight on
The leader of a bid to disrupt the £500m sale of The Telegraph to a consortium led by RedBird Capital Partners has vowed to fight 'to the very end'. Dovid Efune, the publisher of The New York Sun website, made an appearance on Sky News on Sunday to insist that his 'British bid for The Telegraph is alive and well, and not going anywhere'. Mr Efune has secured financial backing from the hedge fund manager Jeremy Hosking and Nadhim Zahawi, the former cabinet minister. They are attempting to contrast their Britishness with RedBird, an American private equity firm which is seeking to acquire The Telegraph alongside British minority investors. Mr Efune faces a steep challenge. On Friday RedBird announced an agreement in principle to take majority ownership of The Telegraph from IMI, the UAE's media investment arm. The British-born publisher said: 'What's been announced is an agreement in principle. And if the history of The Telegraph's ownership saga teaches us anything, it's that the ownership of The Telegraph and, frankly, any other crown jewel of British public life, will not be determined by means of a press release. 'The British public will yet have their say via their elected representatives, The Telegraph's staff and The Telegraph's readers will have their say, as will the rest of the British press.' RedBird IMI, a joint venture between RedBird and the UAE, majority funded by the Gulf state, was blocked from taking full control of The Telegraph last year following an outcry over press freedom. Now, RedBird's founder Gerry Cardinale is working to make RedBird the controlling shareholder, with IMI expected to retain a passive stake of up to 15pc. Mr Efune said: 'There are quite a lot of questions surrounding RedBird themselves, obviously – where does their capital come from?' Mr Cardinale, who also controls AC Milan and is set to become a major shareholder in the Hollywood studio Paramount, has said none of the money that RedBird will use to acquire The Telegraph will be drawn from sovereign sources. Mr Efune added: 'I suspect that because of all of these questions that surround it, there will need to be a public interest intervention, likely an in-depth investigation, which means the saga of The Telegraph could take another year to resolve.' Enders Analysis, a media industry research firm, said last week that Mr Cardinale's status as a newcomer to news publishing meant the regulatory process could be smooth and complete by September. The potential involvement of Lord Rothermere, the owner of The Daily Mail, as a minority shareholder alongside RedBird could complicate matters. But it is unclear how in practice Mr Efune hopes to disrupt the sale. IMI has publicly endorsed RedBird's planned takeover of The Telegraph, saying it will 'secure its future and enable it to thrive for years to come'. Mr Efune, who prior to acquiring the defunct New York Sun and reviving it as a subscription website was the publisher of Algemeiner, a Jewish community newspaper, has shown great persistence in his pursuit of The Telegraph, however. He emerged as the winner of an auction back in early October last year, but has struggled since to raise the necessary funds. Even now, by his own account Mr Efune's consortium has only 'the bulk' of the capital, although he has said he remains in talks with potential backers. His 11th-hour appeal for more time has come wrapped in the Union flag. He said: 'At the end of the day, I expect that most Britons would want to see The Telegraph in British hands should there be a choice – and there is a choice, a clear choice, and we are 100pc committed to seeing it through.' The approach won rhetorical support this weekend from Lord Ashcroft, the Conservative donor and publisher. In a post on X he said Mr Efune was 'seeking British investors for an alternative to foreign ownership … I wish him well'. Mr Efune has not said whether he envisages the UAE retaining a stake and has not always been so focused on securing British finance. He initially sought to raise funding from American hedge funds. They all declined to invest in his proposed deal after he was named preferred bidder. In November it was reported that Sir Mohamed Mansour, the Egyptian-born billionaire and former Conservative party treasurer, was in advanced discussions to bankroll the bid. A former minister under the dictatorship of Hosni Mubarak, Sir Mohamed ruled out participating, following questions from The Telegraph. They covered topics including the regulatory scrutiny his political past and business interest might face. Mr Efune then turned to Leon Black, the billionaire former boss of the Wall Street giant Apollo Global Management. Mr Black pulled out of detailed discussions to back the bid after The Telegraph asked questions about potential regulatory scrutiny of his regrettable relationship with the paedophile financier Jeffrey Epstein, and legal problems related to it. These incidents appear to have frustrated Mr Efune, who on Friday complained that the 'turbulent undertaking' of raising finance had faced 'unwanted interference'. One possible tactic for Mr Efune's consortium is a legal challenge against the Government's handling of The Telegraph if and when it decides to approve the RedBird takeover. Mr Hosking is said by those who have worked directly with him to have an unusually strong appetite for litigation.
New York Times
23-05-2025
- Business
- New York Times
Telegraph Takeover Drama Ends With Deal to Sell U.K. Newspaper to Private Equity
Ownership of The Daily Telegraph, the storied British newspaper long considered close to the country's Conservative Party, is poised to change — again. RedBird Capital Partners, an American investment firm, said on Friday that it reached an agreement in principle to buy control of the newspaper's parent company, Telegraph Media Group, at a valuation of 500 million pounds, or about $675 million. Friday's deal marks the latest twist in a long-running takeover drama for The Telegraph, which for much of its 170-year history has been considered a house organ of sorts for Britain's Conservative Party. (Among its nicknames is The Torygraph.) RedBird had already bought control of the newspaper via a joint venture with International Media Investments, a fund controlled by a member of Abu Dhabi's royal family. Under that plan, the newspaper would have been overseen by Jeff Zucker, the former president of CNN. But that deal was blocked in 2023 after an outcry in Parliament over foreign state ownership of British media assets. Last year, the Conservative-led government passed a law barring foreign state investors from owning British newspapers. The joint venture, known as RedBird IMI, retained control of The Telegraph while soliciting other bids. Following the collapse of RedBird IMI's plan, other media moguls were reportedly considering bids for the newspaper. The most ardent was Dovid Efune, the British-born owner of The New York Sun, though he had struggled to line up financing ahead of a deadline late last year. The Spectator, an influential magazine that was part of the same holding group as The Telegraph, was sold for £100 million last year to Paul Marshall, a British hedge fund tycoon with media interests that include the right-wing TV channel GB News. As part of Friday's deal for The Telegraph, RedBird will buy the majority of its Emirati partner's holdings, though IMI is expected to retain a small stake, pending a change in the foreign ownership law. The current government, led by the Labour Party, announced last week that it would relax that restriction, allowing foreign state entities to own stakes of up to 15 percent in newspapers. It cited the importance of attracting investment in the news media. That opened the door for the revised RedBird offer, since IMI is a minority investor in its consortium. RedBird said it was in talks to line up British investors as minority owners 'with print media expertise and strong commitment to upholding the editorial values of The Telegraph.' The 11-year-old RedBird is a well-known media investor, whose holdings include stakes in the movie studio Skydance Media; Fenway Sports Group, which owns the Boston Red Sox baseball team and the British soccer club Liverpool F.C.; and the New York Yankees' regional sports network. The investment firm said it planned to expand The Telegraph's international footprint, 'particularly in the United States,' as well as its digital operations. 'We believe that the U.K. is a great place to invest, and this acquisition is an important part of RedBird's growing portfolio of media and entertainment companies in the U.K.,' Gerry Cardinale, the founder of RedBird, said in a statement.
