UK Government Halts Jeff Zucker Telegraph Deal To Perform Investigation

Jeff Zucker insists that the newspaper will retain “editorial independence” after the purchase. Photo by: NDZ/STAR MAX/IPx

The government has intervened in the ongoing negotiations by Jeff Zucker regarding the sale of the Telegraph newspaper and Spectator magazine to examine the deal further.

Culture Secretary Lucy Frazer issued a public interest intervention notice Thursday night, prompting Ofcom, the media regulator, to investigate the proposed deal’s potential breach of media standards.

The Barclay family, previously in control of these titles, is negotiating with Lloyds Bank to transfer ownership to RedBird IMI, a joint venture between RedBird Capital and International Media Investments (IMI) of Abu Dhabi, funded primarily by Sheikh Mansour bin Zayed Al Nahyan, UAE’s vice-president.

The complex deal involves RedBird IMI repaying the Barclay family’s £1.16 billion debt to Lloyds Bank, and subsequently converting this debt into equity to acquire the media titles. The inquiry by Ofcom will focus on ensuring the accurate presentation of news, free expression of opinion, and a sufficient plurality of views.

Frazer, confirming the inquiry, emphasised the need for a fair, transparent, and impartial process. The investigations, to be concluded by January 26, 2024, will also involve the Competition and Markets Authority (CMA) examining competition issues.

Journalists and politicians have raised concerns about the deal’s implications on press freedom.

Still, in an interview for The Telegraph, Zucker sought to reassure subscribers and critics that the newspaper would maintain “editorial independence” if the bid was a success and that IMI will remain a passive investor.

If the Barclay family fails to clear their debts by December 1st, a liquidation process will resume, potentially opening the field to rival bidders like GB News co-owner Paul Marshall and Daily Mail owner Lord Rothermere.