Government Opens Consultation To Review Foreign Media Ownership Rules That Blocked RedBird IMI Telegraph Bid
The new law blocked Redbird IMI, an Abu Dhabi-backed entity led by ex-CNN chief Jeff Zucker, from acquiring The Telegraph and The Spectator in April. (AP Photo/Kin Cheung)
Following the strict new rules that derailed the RedBird IMI takeover at The Telegraph, the Department for Culture, Media and Sport (DCMS) has kicked off a consultation on the ownership stakes that foreign state-linked entities can hold in British newspapers.
Digital Markets, Competition and Consumers Act (DMCC), which received royal assent last month, currently prohibits any ownership by foreign powers in UK newspapers. Initially, an amendment allowing passive investments up to 5% from sovereign wealth and state pension funds was proposed but later dropped.
The new law blocked Redbird IMI, an Abu Dhabi-backed entity led by ex-CNN chief Jeff Zucker, from acquiring The Telegraph and The Spectator in April.
The RedBird IMI bid faced significant opposition from politicians and some in the media concerned about the newspaper’s independence, despite reassurance the new owners would maintain editorial freedom, leading to the government pausing the sale.
The DMCC defines foreign powers broadly, encompassing heads of state and senior officials from foreign governments, thus including sovereign wealth and public pension reserve funds.
According to Press Gazette, the DCMS consultation launched this week proposes distinguishing between “foreign powers” and “state-owned investors,” the latter being entities wholly-owned by foreign governments, primarily managing investments for governmental or pension beneficiaries.
DCMS is also considering relaxing the current 5 percent ownership cap for diversified businesses, potentially allowing up to 10 percent foreign ownership if less than 20 percent of global revenue comes from UK newspapers.
Stakeholders have until July 9th, five days after the general election, to submit their views to the department for consideration.
