UK to ban foreign state ownership of British newspapers
LONDON
The U.K. has announced that it plans to bar overseas governments from owning British newspapers, a move that could scupper the contentious Abu Dhabi-led takeover of the Telegraph Media Group.
Stephen Parkinson, a media minister, announced in the upper-chamber House of Lords that the Conservative government would amend proposed legislation so that it "prevents foreign state ownership of newspapers.”
A government spokesperson added that the move would "deliver additional protections for a free press, a pillar of our democracy.”
It follows pressure over the proposed takeover of the Daily Telegraph newspaper and Spectator magazine by a joint venture 75 percent owned by Sheikh Mansour bin Zayed Al Nahyan, vice president and deputy prime minister of the United Arab Emirates.
RedBird IMI, a joint venture between U.S. firm RedBird Capital and Abu Dhabi's International Media Investments, struck a 1.2 billion pounds ($1.5 billion) deal with TMG's owners, the Barclay family, in November.
The agreement saw RedBird IMI pay off bank debts in exchange for control of the media group.
The announcement sparked an uproar in British media circles and the U.K. government quickly opened a formal probe into the sale on public-interest grounds.
The takeover plans have also raised concerns among some lawmakers in the ruling Conservative party, which has long enjoyed a close ideological relationship with the right-leaning Telegraph titles.
The Spectator-- once edited by former Tory prime minister and Brexit figurehead Boris Johnson - is widely considered the "Tory bible.”
Its chair Andrew Neil told Sky News the announcement was "a move in the right direction" but said the government came "late to the party,” as he had long called for such legislation.
The takeover plans have also led to consternation among Telegraph staff, who have repeatedly spoken out against it, and press freedom activists who denounce the UAE's record on press censorship.
