- Sunday, April 28, 2024
The Sunak government’s plan is likely to thwart RedBird IMI, backed by Abu Dhabi, from acquiring the Telegraph, a centuries-old daily.
By: Twinkle Roy
THE UK government on Wednesday (13) unveiled proposals aimed at stopping foreign states from owning newspapers in the country, which could potentially grant ministers the authority to thwart RedBird IMI, backed by Abu Dhabi, from acquiring the Telegraph, a centuries-old daily.
The dispute over ownership of one of Britain’s renowned newspapers has sparked debates regarding the independence of the media and the implications of foreign investors controlling politically significant assets. Given the Telegraph’s ties to the ruling Conservatives, the battle for ownership of the 168-year-old publication is not merely a financial matter but also a contest for power and influence.
The culture minister in the House of Lords, Stephen Parkinson, announced that the government intends to implement modifications via an amendment to legislation currently under review in the parliament to prohibit foreign states from possessing ownership stakes in British newspapers, Reuters reported.
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“We will amend the media merger regime explicitly to rule out newspaper and periodical news magazine mergers involving ownership, influence or control by foreign states,” Parkinson told the Lords.
As per a government official, the planned amendments to the law would effectively halt RedBird IMI’s current structured bid to acquire the Telegraph. The group has also revealed intentions to purchase the Spectator news magazine.
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RedBird IMI, led by former CNN chief Jeff Zucker and primarily financed by Abu Dhabi, expressed profound disappointment and stated that it would assess its subsequent actions. While the deal is already under scrutiny under existing regulations, the new proposal specifically aims to curb foreign state influence, the report added.
Nicknamed “Torygraph” for his right-leaning stance and supporting the Conservative Party, the Daily Telegraph has seen former Tory prime ministers such as Winston Churchill and Boris Johnson writing for it.
The rivalry over ownership of the Telegraph also unfolds amid a backdrop of an unpopular Conservative Party, led by prime minister Rishi Sunak, poised to face potential defeat in the upcoming election, as indicated by polls.
Pressure mounted on the government following a proposal by Tina Stowell, a former Conservative leader in the Lords, who suggested an amendment to the Digital Markets, Competition, and Consumer Bill that would allow parliament to veto foreign governments’ acquisition of British media entities.
Her amendment had won the support of more than 100 MPs who cited concerns including the possibility of editorial interference and censorship. Having forced the government to come up with their own plan, Stowell withdrew her amendment.
The anticipated prohibition of foreign control is set to undergo a vote in the House of Lords in the coming weeks. For the new regulations to take effect, they must secure approval in both the House of Lords and the lower House of Commons.
(With Reuters inputs)
