UK to ban foreign state ownership of British newspapers

LONDON  -  The UK announced Thursday 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 US firm RedBird Capital and Abu Dha­bi’s International Media Investments, struck a £1.2 billion ($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 UK 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. The government spokesperson hinted that the changes were sparked by the proposed takeover of the Telegraph ti­tles. “We have listened carefully to the arguments made by parliamentarians in recent weeks, and are taking action to explicitly rule out foreign state own­ership, influence or control of newspa­pers and periodical news magazines,” the spokesperson said. The amend­ment is set to be added for next week’s scheduled third and final reading of the Digital Markets, Competition and Consumers Bill, meaning they could come into force soon. “We intend that the changes should take immediate ef­fect upon royal assent,” said Parkinson, confirming that the ban would not ap­ply to broadcasters. RedBird IMI is ma­jority-owned by Sheikh Mansour, who is also the owner of the Manchester City football club. RedBird IMI is run by former CNN president Jeff Zucker, who has said that Mansour would be a “passive investor” and that the take­over was “American-led”.British media suggested that minority interests in newspapers and magazines by for­eign governments might be allowed, leaving the door open for a restruc­tured bid by RedBird that reduces the UAE’s stake.

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