The UK government’s decision is expected to resolve two years of uncertainty surrounding the ownership of the Telegraph newspapers by allowing foreign states to hold stakes of up to 15%.
After months of discussion and significant lobbying by newspaper owners, the Department for Culture, Media, and Sport will unveil the limit on Thursday by introducing a new lawful document in parliament.
So, there’s this rule that says nobody can own more than 15% of the Daily and Sunday Telegraph. If that rule stays in place, it could mean that Gerry Cardinal’s company, Redbird capital- they’re a bid investment group from America.
The shadow cuture secretary, Thangam debbonaire, confirmed that Labour was looking at the ownership threshold but declined to say what level it might be set at,
Labour’s spokesperson on cultural issues, Thangam Debbonaire, acknowledged that they were reviewing the ownership rules.
However, she wouldn’t reveal what specific ownership percentage they were considering as the trigger point.
The government argued the legislation was not aimed at any specific country but was a general measure to protect the UK”s media landscape.
According to the government, the new law wasn’t targeting any particular nation. Instead, they claimed it was a broad step to safeguard the UK’s media industry as a whole.
Additionally, the Government explained their plan involved “targeted exceptions”- allowing specific investors like sovereign wealth and pension funds to put up to 15% into British news outlets.
They believed this approach would both help these publications stay afloat and prevent too much foreign control.
Last year, the Conservative government in the UK put limits on foreign government investment in British newspaper.
This action stopped RedBird IMI, headed by ex-CNN chief Zucker and largely funded by Abu Dhabi, from acquiring the Telegraph.
In 2023, with financial backing from Abu Dhabi, RedBird IMI helped the Barclay family settled their 1.2-billion-pound ($1.6 billion) debt with Llyods Bank, which resulted in RedBird IMI gaining control of the Telegraph newspaper and The Spectator magazine.
Then, over a year ago, RedBird IMI offered these publications for sale. The Telegraph is still unsold, but The Soectator was accuired in September by hedge fund entrepreneur Paul Marshall.
Even with a 15% limit, Abu Dhabi could still hold a portion of the newspaper ownership. ($1= 0.75 pound)
