Abu Dhabi-Backed RedBird IMI Pulls Out Of Jeff Zucker Led Telegraph Takeover

RedBird IMI is abandoning its acquisition of the Telegraph Media Group, opting instead to put the famed UK newspaper outfit up for sale.

The decision to bail comes as UK regulators throw up roadblocks, essentially moving to ban foreign government majority ownership of British news outlets.

Last December, in a project led by former CNN chief Jeff Zucker, the Abu Dhabi-backed fund had cleared the path to taking over the Daily Telegraph and Sunday Telegraph, along with the Spectator magazine, by settling the hefty £600 million debt of the previous owners, the Barclay family.

However, the proposed takeover has been plagued by a “lengthy regulatory inquiry” over press freedom concerns, despite assurances of editorial independence from RedBird IMI, only to be hit last month by new UK government legislation banning foreign media asset ownership.

A RedBird IMI spokesman said: “RedBird IMI has today confirmed that it intends to withdraw from its proposed acquisition of the Telegraph Media Group and proceed with

a sale. We continue to believe this approach would have benefited the Telegraph and Spectator’s readers, their journalists and the UK media landscape more widely. Regrettably, it is clear this approach is no longer feasible.”

The focus now, the spokesman said, is to offload the conservative-leaning newspapers and magazine, ensuring a “smooth and orderly sale” amid talks with the government.

This retreat marks a significant retreat from a deal steered by Zucker and backed by UAE’s vice-president Mansour bin Zayed Al Nahyan, also owner of Manchester City Football Club.

The move comes amid high-profile interest from hedge fund titan Paul Marshall, who recently stepped down from the board at GB News’ parent company, and the Daily Mail’s parent company, DMGT.