Telegraph Buy-Over: Jeff Zucker Looks To Replace Abu Dhabi Cash In Sidestep To Government Bid To Block Deal

Jeff Zucker is leading the buy-over deal. (AP Photo/Paul Sancya)

Former CNN chief Jeff Zucker is reportedly looking to court US investors to replace the £600 million worth of Abu Dhabi sovereign wealth used in his proposed purchase of the Telegraph Group, after the Conservative Party’s move to block foreign state majority ownership of British media assets.

Financial Times reports that the Zucker-led joint venture between Gerry Cardinale’s RedBird Capital and Abu Dhabi-based International Media Investments (IMI), buoyed by the ambition to secure the rightwing Telegraph and The Spectator, is now eyeing a full divestiture or potentially drawing in US investors to replace the IMI funds.

IMI is run by Emirati royal Sheikh Mansour bin Zayed Al Nahyan, UAE’s vice-president, and the IMI contribution reportedly constitutes more than three-quarters of the purchasing cash.

The shift comes as Prime Minister Rishi Sunak pledged to revise laws, with an amendment to the Digital Markets Bill, restricting the use of sovereign wealth to acquire a majority stake in British news outlets—a stance that could reshape ownership in the sector. The move is being pushed by a rebellion of Tory politicians in direct resistance to Zucker’s bid. Meanwhile, the planned legislative changes aim to ensure that “passive” investments remain unaffected.

The government’s move comes despite Zucker’s vow to protect “editorial independence” should he complete his buy over and after Culture Secretary Lucy Frazer halted the deal to conduct regulatory checks.

According to the Financial Times, as the government repositions, sources say that IMI is “unlikely to be involved in any future deal.”

Meanwhile, other prospective buyers watch on, including GB News co-owner Sir Paul Marshall and billionaire media mogul Rupert Murdoch’s News UK and Daily Mail-owner DMGT.

Mediaite UK has reached out to RedBird Capital Group for comment.

Have a tip we should know? tips@mediaite.com