NewsUK government, Telegraph
Dec 01, 2023 11:10 AM EST
The culture and media secretary has stepped in to investigate the Daily Telegraph's sale to a business supported by the royal family of Abu Dhabi.
Lloyds Bank assumed ownership of the title in an attempt to recoup £1.1 billion that the owners, the Barclay family, owed.
This month, a company sponsored by Abu Dhabi decided to pay the amount and assume command. It was agreed that the magazine would be quickly transferred to the new owners following the settlement of the debt with Lloyds.
Renowned in the UK for owning Manchester City, Sheikh Mansour bin Zayed Al Nahyan has lent his substantial financial resources to RedBird IMI, the investment group attempting to acquire the Telegraph and the Spectator.
Former CNN president Jeff Zucker is in charge of the consortium. Lucy Frazer, the Secretary of State, did not think it proper to get involved in a debt payback arrangement.
But the UK government and other authorities need to look closely at the transfer of the politically significant Telegraph to what is effectively a foreign power, as she has previously stated and now confirmed.
Now, Ms. Frazer has sent out a Public Interest Intervention Notice (PIIN) due to her worries on the Telegraph, which call for more research.
The transaction has been reported to the media regulator Ofcom, which will examine "the need for accurate presentation of news and free expression of opinion in newspapers," and the Competition and Markets Authority (CMA), which will examine jurisdictional and competition issues.
By January 26, 2024, both the CMA and Ofcom are expected to provide a report.
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Being a very seasoned news head, Jeff Zucker has retaliated against any notion that Gulf ownership will jeopardize the Daily Telegraph, Sunday Telegraph, and Spectator's editorial independence.
However, the agreement has drawn serious criticism from grassroots Conservatives, prominent politicians, and former editors.
To put it plainly, the Barclay family has substituted a debt to the Abu Dhabi royal family for their years of wrangling with Lloyds about how to keep their ownership of the Telegraph.
Former FT editor Lionel Barber has pointed out that the UK has permitted the son of a former KGB spy, Evgeny Lebedev, to control the Independent and the Evening Standard, and a convicted fraudster, Conrad Black, to run the Telegraph.
Charles Moore, a former editor of the Telegraph, is adamant that the circumstances in this case are unique since a foreign power is working with a Tory-leaning newspaper.
Although it's uncertain if Sheikh Mansour will ever be able to take possession of the assets he is paying for, he is taking a financial risk by sending the money to Lloyds, but as someone close to the arrangement stated, it appears to be "a risk he's willing to take".
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