Telegraph Takeover: UAE Pushes for a Dignified Victory
The United Arab Emirates is intensifying efforts to acquire the British newspaper *The Telegraph*, a pursuit now described as a matter of dignity by UAE Vice President Sheikh Mansour bin Zayed Al Nahyan. This follows months of rejected offers linked to concerns over the Gulf state’s reputation and influence.
Earlier reports by *The Telegraph* itself highlighted resistance to the sale, with former Culture Secretary Lucy Fraser stepping in to block a deal involving an Abu Dhabi-backed fund. Her intervention signaled the complexity of the UAE’s attempts to gain control of a significant British media outlet.
Despite this, the saga has dragged on for over a year, leaving *The Telegraph* in limbo under the ownership of RedBird IMI, which is legally barred from taking full control. Staff have faced prolonged uncertainty, with executives unable to make critical strategic decisions during a transformative period for the media industry.
Media analyst Alice Enders compared the situation to a “ghost ship lost in a *Pirates of the Caribbean* movie,” describing the toll on both the organization’s cohesion and its workforce.
The dispute traces back to November 2022, when Fraser issued a Public Interest Intervention Notice (PIIN), prompting a regulatory investigation into a deal where RedBird IMI paid off a £1.2 billion debt for the previous owners, the Barclay family. The intervention led to new laws banning foreign ownership of UK newspapers, effectively scuttling the transaction by March 2023.
As tensions mounted, RedBird IMI listed *The Telegraph* and *The Spectator* for sale. While Sir Paul Marshall, owner of GB News, acquired *The Spectator* for £100 million, negotiations for *The Telegraph* remain unresolved.
The highest bidder, David Evion, owner of *The New York Sun*, is reportedly struggling to secure the £500 million needed for the acquisition, casting further doubt on the sale’s completion.
This prolonged stalemate has raised questions about RedBird IMI’s initial optimism and Sheikh Mansour’s broader ambitions. Legal and regulatory uncertainties persist, as secondary legislation to clarify the new ownership rules remains pending. Meanwhile, debates continue over the cap on foreign investments, with proposals to adjust limits between 5% and 10%.
Despite recording an operating profit of £54.2 million in 2023, *The Telegraph*’s earnings are being directed toward debt repayments and consultancy fees rather than reinvestment in journalism.
As Labour leader Sir Keir Starmer prepares for a visit to the UAE and Saudi Arabia, foreign investment and the unresolved sale of *The Telegraph* are expected to be key topics of discussion. Enders noted that the delays and complications have significantly tested Sheikh Mansour’s patience and dignity, fueling speculation about potential compromises on the regulatory front.
